UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Consolidated Financial Statements and Information on Federal Awards June 30, 2013 (With Independent Auditors’ Reports Thereon) UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION June 30, 2013 Table of Contents Page Independent Auditors’ Report Consolidated Balance Sheets 1 Consolidated Statement of Activities 2 Consolidated Statements of Cash Flows 4 Notes to Consolidated Financial Statements 5 Schedule of Expenditures of Federal Awards 35 Notes to Schedule of Expenditures of Federal Awards 71 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 81 Independent Auditors’ Report on Compliance for Each Major Program; Report on Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133, Audit of States, Local Governments, and Non-Profit Organizations. 83 Schedule of Findings and Questioned Costs 86 KPMG LLP BNY Mellon Center Suite 3400 500 Grant Street Pittsburgh, PA 15219-2598 Independent Auditors’ Report The Board of Trustees University of Pittsburgh – Of the Commonwealth System of Higher Education: We have audited the accompanying consolidated financial statements of the University of Pittsburgh – Of the Commonwealth System of Higher Education (the University), which comprise the consolidated balance sheets as of June 30, 2013 and 2012, and the related consolidated statements of activities and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated balance sheets of the University of Pittsburgh – Of the Commonwealth System of Higher Education as of June 30, 2013 and 2012, and the changes in their net assets and their cash flows for the years then ended, in accordance with U.S. generally accepted accounting principles. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 17, 2013 on our consideration of the University’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the University’s internal control over financial reporting and compliance. Pittsburgh, Pennsylvania September 17, 2013 KPMG LLP is a Delaware limited liability partnership, the U.S. member firm of KPMG International Cooperative (“KPMG International”), a Swiss entity. C o n s o l i d at e d F i n a n c i a l S tat e m e n t s University of Pittsburgh Consolidated Balance Sheets June 30, 2013 and 2012 (in thousands of dollars) 20132012 ASSETS: Cash and cash equivalents (Notes 1 and 5) $196,807 $ 47,751 Operating investments (Notes 4 and 5)407,586 627,386 Inventories and deferred charges Accounts and notes receivable, net (Note 2)160,053 158,464 Contributions receivable, net (Note 3)32,857 58,994 Student loans receivable, net Deposits of bond and note proceeds (Notes 1 and 5)90,403 8,514 Foundation assets (Note 1)22,726 21,234 Endowment investments (Notes 4 and 5)2,994,207 2,635,487 Endowed funds held by third parties (Note 5)19,954 18,074 Property, plant, and equipment, net (Note 6)1,788,475 1,715,731 22,700 48,569 21,986 48,027 TOTAL ASSETS $5,784,337 $ 5,361,648 LIABILITIES: Accounts payable and accrued expenses $ 103,358 $ 100,310 Accrued payroll and related liabilities 75,008 76,713 Deferred student and other revenue 43,775 37,815 Advanced receipt of grant funds 71,582 82,853 Refundable U.S. government student loans 32,928 32,559 Other liabilities (Notes 5 and 9)103,685 140,955 Pension and postretirement obligations (Note 10) 406,825 431,957 Conditional asset remediation obligation (Note 7)40,571 40,946 Bonds and notes payable (Note 8)1,103,491 1,017,134 TOTAL LIABILITIES1,981,223 1,961,242 NET ASSETS: Unrestricted (Notes 1 and 11)2,506,552 2,184,101 Temporarily restricted (Notes 1 and 11)674,134 622,629 Permanently restricted (Notes 1 and 11)622,428 593,676 TOTAL NET ASSETS3,803,114 3,400,406 TOTAL LIABILITIES AND NET ASSETS $5,784,337 The accompanying notes are an integral part of these consolidated financial statements. -1- $5,361,648 C o n s o l i d at e d F i n a n c i a l S tat e m e n t s University of Pittsburgh Consolidated Statement of Activities For the Year Ended June 30, 2013 Compared to Summary Information for the Year Ended June 30, 2012 (in thousands of dollars) 2013 Temporarily Permanently OPERATING REVENUES: UnrestrictedRestrictedRestricted Total Tuition and fees $ 703,914 $ - $ Tuition discounts (158,216) - Net tuition and fees 545,698 - Commonwealth appropriation 144,308 - Commonwealth construction grants 43,996 - Grants and contracts 738,502 - Grants and contracts - ARRA 20,890 - Contributions for operations 31,967 5,392 Investment income - operating investments 8,532 - Endowment distributions for operations 87,513 - Sales and services, educational and other 143,042 - Sales and services, auxiliary 132,565 - Rental revenue 18,353 - Other 65,073 - Net assets released from restrictions 19,687 (19,687) - $ - - - - - - - - - - - - - - Total operating revenues2,000,126 (14,295) -1,985,8311,976,870 OPERATING EXPENSES: Salaries and wages 867,745 Fringe benefits 264,221 Total compensation1,131,966 Supplies 107,384 Business and professional 297,487 Utilities 47,093 Maintenance and facilities 43,248 Depreciation 151,542 Interest 44,784 Other 57,216 - - - - - - - - - - - 867,745 869,173 - 264,221 266,108 -1,131,9661,135,281 - 107,384 114,140 - 297,487 300,322 - 47,093 47,536 - 43,248 44,906 - 151,542 145,716 - 44,784 46,631 - 57,216 54,598 Total operating expenses (Note 12)1,880,720 - -1,880,7201,889,130 Change in net assets from operating activities 119,406 (14,295) 703,914 $ (158,216) 545,698 144,308 43,996 738,502 20,890 37,359 8,532 87,513 143,042 132,565 18,353 65,073 - 2012 - 105,111 682,545 (157,468) 525,077 137,649 38,019 730,085 50,320 43,248 13,679 82,595 136,129 132,926 18,182 68,961 - 87,740 OTHER ACTIVITIES: Investment gains (losses), net of endowment distributions for operations 118,481 65,800 2,737 187,018 (40,699) Contributions for endowment - - 26,015 26,015 35,790 Change in fair value of interest rate swaps 41,166-- 41,166 (61,629) Nonperiodic changes in benefit plans including special termination (Note 10) 43,398 - - 43,398 (111,750) Total other activities203,04565,800 28,752 297,597(178,288) CHANGE IN NET ASSETS 322,451 51,505 28,752 402,708 (90,548) NET ASSETS, BEGINNING OF YEAR2,184,101 622,629593,676 3,400,4063,490,954 NET ASSETS, END OF YEAR $2,506,552 $674,134 $622,428 $3,803,114 $3,400,406 The accompanying notes are an integral part of these consolidated financial statements. -2- University of Pittsburgh Consolidated Statement of Activities For the Year Ended June 30, 2012 (in thousands of dollars) 2012 Temporarily Permanently OPERATING REVENUES: UnrestrictedRestricted Restricted Total Tuition and fees $ 682,545 $ - $ Tuition discounts(157,468) - Net tuition and fees 525,077 - Commonwealth appropriation137,649 - Commonwealth construction grants 38,019 - Grants and contracts 730,085 - Grants and contracts - ARRA 50,320 - Contributions for operations24,23419,014 Investment income - operating investments 13,679 - Endowment distributions for operations 82,595 - Sales and services, educational and other 136,129 - Sales and services, auxiliary 132,926 - Rental revenue18,182 - Other68,961 - Net assets released from restrictions 14,797 (14,797) - $ 682,545 -(157,468) - 525,077 -137,649 - 38,019 - 730,085 - 50,320 -43,248 - 13,679 - 82,595 - 136,129 - 132,926 -18,182 -68,961 - - Total operating revenues1,972,653 -1,976,870 4,217 OPERATING EXPENSES: Salaries and wages 869,173 Fringe benefits 266,108 Total compensation1,135,281 Supplies114,140 Business and professional 300,322 Utilities47,536 Maintenance and facilities 44,906 Depreciation145,716 Interest46,631 Other54,598 - - - - - - - - - - - 869,173 - 266,108 -1,135,281 -114,140 - 300,322 -47,536 - 44,906 -145,716 -46,631 -54,598 Total operating expenses (Note 12)1,889,130 - -1,889,130 Change in net assets from operating activities 83,523 4,217 - 87,740 OTHER ACTIVITIES: Investment (losses) gains, net of endowment distributions for operations (9,740) (33,892) 2,933 (40,699) Contributions for endowment - - 35,790 35,790 Change in fair value of interest rate swaps (61,629) - - (61,629) Nonperiodic changes in benefit plans including special termination (Note 10) (111,750)-- (111,750) Total other activities (183,119) (33,892) 38,723 (178,288) CHANGE IN NET ASSETS(99,596)(29,675) 38,723(90,548) NET ASSETS, BEGINNING OF YEAR2,283,697 652,304 554,9533,490,954 NET ASSETS, END OF YEAR $2,184,101 $ 622,629 $ 593,676 $3,400,406 -3- C o n s o l i d at e d F i n a n c i a l S tat e m e n t s University of Pittsburgh Consolidated Statements of Cash Flows For the Years Ended June 30, 2013 and 2012 (in thousands of dollars) 2013 2012 CASH AND CASH EQUIVALENTS: End of year $ 196,807 $ 47,751 Beginning of year 47,751 87,061 CHANGE IN CASH AND CASH EQUIVALENTS $149,056 $ (39,310) CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ 402,708 $ (90,548) Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 151,542 145,716 Net bond premium amortization (5,961) (6,226) Loss on disposal of plant assets 3,814 2,408 Investment gains (245,311) (16,432) Change in fair value of interest rate swaps (41,166) 61,629 Contributions restricted for long-term investment (87,130) (76,621) Changes in operating assets and liabilities: Accounts, notes, contributions, and loan receivables, net 24,006 (11,937) Other assets (714) 852 Accounts payable and accrued expenses 442 (9,892) Pension and postretirement obligations (25,132) 126,712 Conditional asset remediation obligation (375) 87 Other liabilities 2,191 (2,178) Government student loans and deferred revenue (4,942) 1,138 Net cash provided by operating activities173,972124,708 CASH FLOWS FROM INVESTING ACTIVITIES: Expended for property, plant, and equipment - University (184,104) (151,079) Expended for property, plant, and equipment - commonwealth (43,996) (38,019) Change in accounts payable for property, plant, and equipment 2,606 (7,904) Change in investments held under securities lending program - 101,855 Change in liabilities under securities lending program - (101,855) Purchases/sales of operating investments, net 218,145 (11,017) Purchases of endowment investments (1,352,853) (1,424,870) Proceeds from sales/maturities of endowment investments 1,239,205 1,357,327 Change in endowed funds held by third parties, excluding gains 14 Change in foundation assets (1,492) 3,531 Net cash used for investing activities(122,475)(272,031) CASH FLOWS FROM FINANCING ACTIVITIES: Principal repayment of debt (30,000) (131,500) Proceeds from issuance of debt 122,318 122,262 Change in deposits of bond and note proceeds (81,889) 40,630 Contributions restricted for long-term investment 87,130 76,621 Net cash provided by financing activities97,559 108,013 CHANGE IN CASH AND CASH EQUIVALENTS $149,056 Supplemental disclosure of cash flow information: Cash paid for interest (excluding fees) $51,117 $53,268 Noncash investing activity for property, plant, and equipment-accounts payable $34,786 $32,180 The accompanying notes are an integral part of these consolidated financial statements. -4- $ (39,310) Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s Note 1: Summary of Significant Accounting and Reporting Practices Organization Founded in 1787, the University of Pittsburgh of the Commonwealth System of Higher Education (the University) is an institution of higher education with a three-pronged mission to provide the highest-quality instruction for its students, engage in innovative research activities, and support the state and local community through public service programs. In its 226 year history, the University has evolved into an internationally recognized center of learning and research. The University’s main campus in the City of Pittsburgh is comprised of 16 schools and several academic centers educating nearly 29,000 students in various undergraduate, graduate, and first professional programs. Four regional campuses with a total enrollment approximating 6,500 students are located throughout western Pennsylvania. Relationship with the Commonwealth of Pennsylvania The University derives its corporate existence under the laws of the Commonwealth of Pennsylvania (the commonwealth) by reason of the act of the General Assembly of the commonwealth establishing an “Academy or Public School in the town of Pittsburgh” on February 28, 1787 and from the act of February 18, 1819 incorporating the “Western University of Pennsylvania.” In 1908, the University’s name was changed to the “University of Pittsburgh” by order of the Court of Common Pleas of Allegheny County. In 1966, the Pennsylvania State Legislature enacted the “University of Pittsburgh-Commonwealth Act,” which changed the name of the University to the “University of Pittsburgh – of the Commonwealth System of Higher Education” and established the University as an instrumentality of the commonwealth to serve as a state-related institution in the Commonwealth System of Higher Education. The University is a Pennsylvania nonprofit corporation subject to the Nonprofit Corporation Law of 1988. The entire management, control, and conduct of the instructional, administrative, and financial affairs of the University are vested in the Board of Trustees. The Board of Trustees is composed of fifty-two members (thirty-six voting members), including twelve commonwealth trustees and sixteen special trustees elected by the board. Special trustees may attend all meetings of the board and are entitled to and exercise all rights, responsibilities, and privileges of trusteeship, except the right to vote at board meetings. As a state-related institution, the University receives an annual operating appropriation from the commonwealth. The appropriation is subject to the commonwealth’s annual budget process. There is no assurance that such appropriation will continue to be made, or will be made, at current levels or at levels requested by the University. The appropriation from the commonwealth was $144.3 million in 2013 and $137.6 million in 2012. In addition to the annual appropriation, the commonwealth also funds certain capital projects in support of the University’s mission. Amounts funded by the commonwealth for capital projects were $44.0 million in 2013 and $38.0 million in 2012. Basis of Presentation The consolidated financial statements include the accounts of the University, which do not include the net assets or activities of the University of Pittsburgh Medical Center (UPMC) or the University of Pittsburgh Physicians (UPP) clinical practice plans, as they are separate legal entities not controlled by the University. The University does have the right to designate one-third of the members of the UPMC Governing Board and its Executive Committee. The other activities section of the Consolidated Statements of Activities includes investment gains (losses), net of endowment distributions for operations; contributions for endowment; changes in fair value of interest rate swaps; nonperiodic changes in pension and postretirement benefit plans; and other nonrecurring or unusual revenues or expenses. Endowment distributions for operations represent endowment income distributions that are not reinvested in the endowment (see Note 11). Basis of Accounting The consolidated financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (GAAP) as promulgated by the Financial Accounting Standards Board (FASB). In accordance with GAAP, the University’s net assets have been classified as either unrestricted, temporarily restricted, or permanently restricted based upon the existence or absence of donor-imposed restrictions. Unrestricted net assets are not subject to donor-imposed restrictions and are used for general operating purposes of -5- Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s the University. This class of net assets also includes certain contributions and endowment earnings whose donorimposed restrictions have been met within the fiscal year. Temporarily restricted net assets are subject to certain time or purpose restrictions by the donor. Upon satisfaction of these restrictions, the net assets are transferred to unrestricted. Amounts released from restrictions in fiscal 2013 and 2012 relate primarily to cash collections on pledges where purpose restrictions had already been met. Temporarily restricted net assets at June 30, 2013 and 2012 consist of endowment balances ($648.9 million and $583.5 million, respectively); the net present value of temporarily restricted contributions and unconditional pledges ($20.6 million and $34.5 million, respectively); and split-interest agreements ($4.6 million in both years). Permanently restricted net assets are those subject to permanent donor-imposed restrictions and at June 30, 2013 and 2012 consist of endowment balances ($597.5 million and $556.3 million, respectively); the net present value of permanently restricted contributions and unconditional pledges ($12.8 million and $25.5 million, respectively); and private student loan funds ($12.1 million and $11.9 million, respectively). Donor-restricted endowed contributions require that the original corpus of the contributions be maintained in perpetuity. The distributions from earnings generated by these contributions may be either expended or reinvested in the endowment, in accordance with donor restrictions and contribution and spending policies (see Note 11). Estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Revenue Recognition Revenue for programs or activities to be conducted in future periods such as student tuition and room and board are classified as deferred revenue. Revenue for these activities is recognized as services are provided. Advanced receipt of exchange transactions such as grants and contracts are also classified as deferred revenue, with -6- revenue being recognized as funds are expended and sponsored programs are executed. Tuition discounts are recorded to the extent that either institutional financial aid or aid funded by contributions, endowment distributions, and grant activities are awarded. Tuition discounts attributable to institutional funds in 2013 and 2012 were $136.9 million and $135.1 million, respectively. Tuition discounts attributable to contributions, endowment distributions, and grant activities in 2013 and 2012 were $21.3 million and $22.4 million, respectively. Government Loan Funds U.S. government-sponsored student loan funds are recorded as liabilities because these funds are refundable to the federal government under certain conditions. Student loan funds donated by private groups, organizations, or individuals are recorded as permanently restricted net assets since such funds operate on a revolving fund basis with principal and interest payments remaining in the fund for future lending. Cash and Cash Equivalents and Operating Investments Cash equivalents consist of investments with original maturities of three months or less and all assets invested in the University’s short-term investment fund, which the University utilizes to fund daily cash needs. The fund invests in short-term Treasury securities and other short-term, high quality securities, all of which can be liquidated without penalty within 7 days. All securities held in the fund must be rated A3/P-1 or better by Moody’s Investors Service or A-/A-1 or better by Standard & Poor’s Ratings Services at the time of purchase. Cash and cash equivalents that are part of endowment investments are shown therewith as these funds are used for endowment purposes rather than University operating needs. Operating investments primarily include high quality obligations of the U.S. government and government agencies, bank certificates, commercial paper, corporate notes, and other fixed income obligations. Operating investments are reported at fair value, generally based on quoted market prices, and are used for general operating purposes. Allowance for Doubtful Accounts The University maintains allowances for doubtful accounts to reflect management’s best estimate of probable losses inherent in receivable balances. Management determines the allowances for doubtful accounts based on known troubled accounts, historical experience, and other currently available evidence. Receivables are written off when management determines they will not be collected. Deposits of Bond and Note Proceeds Deposits of bond and note proceeds consist of unspent funds which will be used for certain capital projects and for repayment of certain debt obligations. These funds are invested in cash, cash equivalents, and U.S. Treasury securities and are reported in the Consolidated Balance Sheets at fair value. Endowment Investments The University’s endowment investments are reported at fair value. The fair value of direct University holdings in publicly traded securities is based upon quoted market prices. The fair value of all other investments, which consist of indirect holdings in both privately and publicly traded assets, is determined using net asset value (NAV) per share or unit of interest. Used as a practical expedient for the estimated fair value, NAV per share or its equivalent is provided by the fund manager and reviewed by the University. Indirect holdings of private assets primarily consist of University interests in funds investing in nonmarketable alternatives, real assets, and/or distressed securities, whereas indirect holdings of publicly traded assets primarily consist of University interests in marketable alternatives or other commingled funds. Nonmarketable alternatives are private equity or equitylike holdings, such as mezzanine and subordinated debt interests, in venture, buyout, or recapitalized companies or properties. Real assets are physical assets, or financial assets associated with such physical assets, whose income streams and/or fair values tend to rise with inflation; they include real estate, natural resources, commodities, and other hard assets. Marketable alternatives consist of distressed debt and hedging strategies, including eventdriven hedging strategies, such as merger or credit arbitrage, and value-driven hedging strategies, such as long/ short, market neutral, and other hedging strategies. -7- Due to the nature of the investments held by the funds, changes in market conditions, economic environment, regulatory environment, currency exchange rates, interest rates, and commodity price fluctuations may significantly impact the NAV of the funds and, consequently, the fair value of the University’s interest in the funds and could materially affect the amounts reported in the consolidated financial statements. Although a secondary market exists for these investments, it is not active, and individual transactions are typically not observable. When transactions do occur in this limited secondary market, they may occur at discounts to the reported NAV. It is therefore at least reasonably possible that if the University were to sell these investments in the secondary market, a buyer may require a discount to the reported NAV, and the discount could be significant. The University attempts to manage these risks through diversification, ongoing due diligence of fund managers, maintaining adequate liquidity, and continuously monitoring economic and market conditions. Derivative Financial Instruments The University records derivatives at fair value in the Consolidated Balance Sheets with changes in fair value reflected in the Consolidated Statements of Activities (see Note 9). Contributions The University records at fair value unconditional pledges (which are agreements with donors involving nonreciprocal transfers of cash, other assets, or services) as either temporarily restricted or permanently restricted contributions dependent upon the nature of the donor-imposed restrictions. Contributions whose restrictions are met in the same fiscal year as receipt are combined and reported with unrestricted contributions. Contributions receivable are discounted at a risk-adjusted rate commensurate with the donor’s payment plan. Conditional pledges of cash or other assets are recognized as contribution revenues and receivables when the conditions surrounding the pledge are substantially met. Bequests are considered to be intentions to give and do not fall within the definition of an unconditional pledge, and hence, are not recognized in the consolidated financial statements. Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s Split-Interest Agreements These agreements with donors consist primarily of charitable gift annuities, pooled income funds, and irrevocable charitable remainder trusts for which the University serves as trustee. Assets are invested and payments are made to donors and/or other beneficiaries in accordance with the respective agreements. Other liabilities include $9.0 million at June 30, 2013 and 2012 for split-interest agreements. Foundation Assets The University’s foundation assets include the Bradford Educational Foundation (BEF). The BEF is a 509(a)(3) Type III supporting organization whose sole purpose is to receive, administer, and distribute property for the benefit of the University of Pittsburgh Bradford campus. The BEF is governed by an independent board of directors, with the majority of members being nonUniversity members. Although the University does not exercise control of the BEF, all assets held by the BEF are held for the financial benefit of the University. As such, the consolidated financial statements include the net assets and annual change in net assets of the BEF. Property, Plant, and Equipment Property, plant, and equipment is recorded at cost, or if acquired by contribution, at fair value as of the date of the contribution. Depreciation is calculated using the straight-line method. Useful lives generally range from 15 to 40 years for buildings and improvements and 5 to 10 years for furnishings and equipment. As assets are retired, sold, or otherwise disposed, the cost and related accumulated depreciation are removed from the accounts, and gains or losses are recognized in the Consolidated Statements of Activities. Costs associated with the construction of new facilities and renovation and expansion of existing facilities are capitalized within construction in progress until such projects are placed in service. The University capitalizes software and related implementation costs and generally depreciates such assets over 5 to 10 years. Works of art, historical treasures, and similar assets include a variety of paintings, sculptures, photographs, antiques, and furnishings, as well as scholarly papers and archives. These assets are used for public exhibition, the preservation of artifacts and antiques for -8- future generations, and scholarly research. Due to their nature, these assets are not depreciated. Library books, which include hard copy publications, periodicals, and electronic publications with rights to archival content, are depreciated over a period of 7 years. Maintenance and repairs are expensed as incurred. Insurance Liabilities The University is self-insured through an agreement with UPMC to provide medical coverage for its employees. A liability for estimated incurred but unreported claims of $7.4 million and $7.6 million has been recorded at June 30, 2013 and 2012, respectively, based upon management’s analysis of claims history. This liability is reflected in accrued payroll and related liabilities in the Consolidated Balance Sheets. The University is also self-insured for certain other activities, including workers’ compensation, unemployment compensation, and litigation claims. Liabilities have been established for these programs generally based on third-party administrators’ estimates using the University’s historical loss experience. The self-insurance accrual is subject to periodic adjustment by the University based on actual loss experience factors. Liabilities for these other self-insured obligations aggregated $9.5 million and $9.1 million at June 30, 2013 and 2012, respectively, and are included in accrued payroll and related liabilities on the Consolidated Balance Sheets. Grants and Contracts The University conducts sponsored program activity with various sponsors, including agencies and departments of the federal government, the commonwealth, local government entities, companies, and foundations. Sponsored activity in 2013 and 2012 was $759.4 million and $780.4 million, respectively, with approximately 60% of the funding awarded through the National Institutes of Health. Grants and contracts - ARRA represents funding received through the American Recovery and Reinvestment Act of 2009. Most University sponsored activity is conducted on a cost reimbursable basis with the University receiving funding after the related expenses have been incurred. Certain sponsors, however, provide funding in advance of related expenses, and such funding is recorded as advanced receipt of grant funds on the Consolidated Balance Sheets. Revenue from sponsored awards is recognized as the related expenses are incurred. There is no assurance that sponsored awards will continue to be made at current levels. The University incurs both direct and indirect costs in the conduct of its sponsored activity. Recovery of indirect costs through federal awards is based upon predetermined rates negotiated with the Department of Health and Human Services. Indirect cost recovery rates from nonfederal sources may vary. Funds received through federal sources are subject to audit each year in accordance with the Office of Management and Budget Circular A-133. Securities Lending Through an agreement with its primary investment custodian, the University made available its securities for loan to borrowers identified by the custodian. In exchange for lending a security, the University received a fee and continued earning applicable interest and dividends on the loaned security. In September 2011, the University terminated its securities lending agreement and all loans were recalled. There were no securities lending transactions in 2013. Reclassifications Certain amounts in the 2012 consolidated financial statements have been reclassified to conform to the presentation of the 2013 consolidated financial statements. Endowment earnings, including gains and losses, in the Consolidated Statements of Activities have been presented as endowment distributions for operations and investment gains (losses), net of endowment distributions for operations. Tax-Exempt Status The University is exempt from federal income tax under Section 501(c)(3) of the United States Internal Revenue Code. Accordingly, it is not subject to income taxes except to the extent it has taxable income from activities that are not related to its exempt purpose. The University annually reviews its tax positions and has determined that there are no material uncertain tax positions that require recognition in the consolidated financial statements. No provision for income taxes was required for 2013 or 2012. Note 2: Accounts and Notes Receivable, Net Accounts and notes receivable, net at June 30 consists of the following: 20132012 (in thousands of dollars) Sponsored research receivables, net $ $ 93,284 Plant construction receivables due from commonwealth 22,615 16,039 Hospitals and affiliated organizations receivables, net 19,834 17,429 Student receivables, net 9,837 10,421 Interest income receivables 1,809 3,073 14,467 18,218 Other receivables, net Total accounts and notes receivable, net $ -9- 91,491 160,053 $ 158,464 Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s Note 3: Contributions Receivable, Net Contributions receivable, net at June 30 consists of the following: 2012 2013 (in thousands of dollars) Amounts due in: Less than one year One to five years Greater than five years Gross contributions receivable Less: Allowance for uncollectible pledges Unamortized discounts Total contributions receivable, net $ 14,350 $ 19,602 841 34,793 (1,299) (637) $32,857 At June 30, 2013 and 2012, the five largest outstanding pledge balances represented 37% and 52%, respectively, of the University’s net contributions receivable. The University has been named a beneficiary in the wills of numerous donors or has received conditional pledges totaling $147.4 million and $128.8 million at June 30, 2013 and 2012, respectively. These bequests and conditional pledges are not included in the consolidated financial statements. The University is one of the beneficiaries of the Dietrich Foundation (the Foundation), a public charity created by William S. Dietrich II pursuant to an Amended and Restated Declaration of Trust dated August 23, 2011 (the Trust). The Foundation is a 509(a)(3) Type I supporting organization, organized and operated exclusively for charitable, scientific, and educational purposes. Its primary mission is to provide ongoing support to a number of educational institutions, largely in the greater Pittsburgh area, including the University. The Trust provides that five of the Foundation’s nine trustees shall be educational institution trustees, two of whom shall be - 10 - 33,797 26,053 1,432 61,282 (1,636) (652) $ 58,994 appointed by the University. The Foundation expects to make annual distributions to its named charitable beneficiaries, pursuant to which the University would receive 25% of the amount distributed. The market value of the Foundation’s net assets at June 30, 2013 was reported to be approximately $552.1 million, of which approximately $138.0 million is attributable to the University based upon current beneficiary allocations. The University has not recognized an interest in the Foundation because the Foundation’s trustees, by a super-majority vote, have the authority to adjust the allocation of annual distributions among the educational institution beneficiaries. Distributions from the Foundation are recorded as contributions for endowment in the Consolidated Statement of Activities and are held by the University in separate, permanently restricted funds within the University’s endowment; each is designated appropriately as a Dietrich Foundation endowment fund. Distributions received from the Foundation in 2013 totaled $3.6 million. No distributions were made in 2012. Note 4: Endowment and Operating Investments Investments at June 30 consist of the following: 2013 2012 (in thousands of dollars) Endowment investments: Pooled $ 2,965,077 $ 2,609,706 Nonpooled 29,130 25,781 Subtotal endowment investments 2,994,207 2,635,487 Operating investments (Note 1)407,586627,386 Total endowment and operating investments $3,401,793 $3,262,873 Composition of endowment investments: Cash and cash equivalents Domestic equities International equities U.S. government and government agencies’ securities, bank acceptances and certificates, and commercial paper Corporate bonds and other obligations Alternative investment funds and partnerships: Marketable alternatives Private equities/venture capital Real assets Total endowment investments $ The philosophies and policies employed in the management of the endowment are long-term by definition, as they are based on the expectation that the endowment will continue to provide financial support to the University in perpetuity. Accordingly, the University’s - 11 - $ 162,552 150,745 Composition of operating investments: U.S. government and government agencies’ securities, bank acceptances and certificates, and commercial paper Corporate bonds and other obligations Other Total operating investments Unless precluded by size or donor restrictions, individual endowment fund assets are pooled and collectively managed on a unitized basis. Each endowment fund subscribes to or disposes of units in the pool, using fair value per unit at the beginning of the month such subscription or disposition occurs to account for the transaction. 58,095 417,065 567,732 73,066 325,719 467,779 161,875 136,592 598,232 561,120 478,666 $2,994,207 458,333 574,187 437,936 $2,635,487 $ $ 230,993 159,072 17,521 $407,586 395,246 218,950 13,190 $627,386 investment policy is intended to optimize long-term total return — income plus capital appreciation — relative to the level of risk taken. The University’s investment policy contemplates the effects of its spending policy. The endowment spending policy balances the need for reliable and predictable earnings distributions to support current University activities with the desire to maintain the purchasing power of endowment assets so that they can continue providing financial support for future generations (see Note 11). Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s The following table summarizes the University’s investments at June 30, 2013 and 2012 for which net asset value (NAV) was used as a practical expedient to estimate fair value: Fair Value Determined UnfundedUnfunded using NAV CommitmentsCommitments Asset Class/Investment Description 2013 2012 at June 30, 2013 at June 30, 2012 (in thousands of dollars) Emerging markets equities Commingled emerging markets fund $ 118,428 $ 83,357 $ Marketable alternatives Distressed debt - redeemable 10,704 20,911 Distressed debt - nonredeemable 41,441 66,269 Multi-strategy/arbitrage251,953169,008 Long/short equity294,134202,145 Total marketable alternatives 598,232 458,333 - $ - - 491 3,320 - - 491 3,320 Nonmarketable alternatives Private equity funds327,174333,953237,092186,162 Venture capital funds 233,946 240,234 85,843 80,877 Total nonmarketable alternatives561,120574,187322,935267,039 Real assets Real assets - redeemable 58,428 36,576 - Private real estate funds 201,423 185,622 67,520 85,504 Private energy funds165,244163,607107,318 42,671 Private timber funds 53,571 52,131 - 3,632 Total real assets478,666437,936174,838131,807 Total $1,756,446 $1,553,813 $ 498,264 $ 402,166 Descriptions follow for each of the investments set forth in the table above: Commingled Emerging Markets Fund The University’s investment is in a commingled fund that holds publicly traded emerging market equities. The investment may be liquidated without penalty within 120 days of providing a month-end notice. Distressed Debt – Redeemable The University’s investment is in one commingled fund. The fund is a hedge fund that holds both long and short positions in publicly traded, and some privately traded, distressed securities. Half of the University’s interest in - 12 - the fund may be redeemed without penalty within the next three months and the other half can be redeemed without penalty in the next 15 months. Distressed Debt – Nonredeemable The University’s investments are interests in nine commingled funds managed by three investment managers. All of the funds hold distressed securities traded publicly and/or privately, and all have investment periods of three years or longer, during which committed capital may be called. The University’s interests in the funds are reduced typically over multi-year periods as the managers return invested capital and distribute proceeds realized from underlying fund assets. Multi-Strategy/Arbitrage The University’s investments are interests in seven commingled funds. These funds are hedge funds that hold both long and short positions in equities, fixed income, and financial derivatives. The University’s interests in four of the funds may be liquidated without penalty as follows: (a) two on an annual basis with 45-day notice; (b) one on a quarterly basis with 30-day notice; and (c) one on an annual basis with 30-day notice beginning September 30, 2012. The University’s interests in two of the funds may be liquidated in quarterly increments of 25%. One of the funds has a 65-day notice; the other fund has a 75-day notice. The University’s interest in the seventh fund is being liquidated, and the University will receive distributions over 2-4 years upon the realization of asset sales. Long/Short Equity The University’s investments are interests in nine commingled funds. These funds are hedge funds that hold both long and short positions in publicly traded global equities. The University’s interests in all but four of the funds may be liquidated without penalty on a quarterly or monthly basis with 30-60 day notice. The University’s interests in the remaining four funds may be liquidated without penalty as follows: (a) one on a quarterly basis with 180-day notice; (b) one on a quarterly basis in increments of 25% with 60-day notice; (c) one on an annual basis at calendar year-end with 60-day notice; and (d) one with 60-day notice every three years for 80% of the assets, annually for 10% of the assets, and quarterly for the remaining 10% of the assets. Private Equity Funds The University’s investments are interests in 70 commingled, private equity funds. These funds are invested in equity and equity-like securities of mostly nonpublicly traded companies over periods of typically three to five years, during which committed capital may be called. The University’s interests in private equity funds are considered to be relatively illiquid in that they are not easily transferable and typically achieve liquidity over multi-year periods when and if the fund managers return invested capital or distribute proceeds realized from underlying fund assets. - 13 - Venture Capital Funds The University’s investments are interests in 50 commingled, venture capital funds, a form of private equity. These funds are invested in equity and equity-like securities of mostly nonpublicly traded, immature companies over periods of typically three to five years, during which committed capital may be called. The University’s interests in venture capital funds are considered to be illiquid in that they are in riskier assets, they are not easily transferable, and they typically can only achieve liquidity over multi-year periods when and if the fund managers return invested capital or distribute proceeds from the underlying fund assets. Real Assets - Redeemable The University’s investments are interests in two commingled funds. These funds hold publicly traded physical assets, as well as financial assets associated with such physical assets, including real estate, natural resources, commodities, and the global equities of hard asset companies. The University’s interest in one of the funds is currently being liquidated; its interest in the other fund is fully redeemable without penalty on a monthly basis with 10-day notice. Private Real Estate Funds The University’s investments are interests in 31 commingled, private real estate funds. These funds are primarily invested in privately traded real estate-related properties and interests, including interests in companies engaged in real estate operations, and are invested over periods of typically three to five years, during which committed capital may be called. The University’s interests in private real estate funds are considered to be relatively illiquid in that they are not easily transferable and typically achieve liquidity over multi-year periods when and if the fund managers return invested capital or distribute proceeds realized from underlying fund assets. Private Energy Funds The University’s investments are interests in 29 commingled, private energy funds. These funds are primarily invested in privately traded energy-related properties and interests, including interests in oil and gas and other fossil fuel reserves, production, storage, and transporta- Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s tion facilities, power generating plants, and companies engaged in energy-related activities, and are invested over periods of typically three to five years, during which committed capital may be called. The University’s interests in private energy funds are considered to be relatively illiquid in that they are not easily transferable and typically achieve liquidity over multi-year periods when and if the fund managers return invested capital or distribute proceeds realized from underlying fund assets. Private Timber Funds The University’s investments are interests in four commingled, private timber funds. These funds are primarily - 14 - invested in privately traded timber properties and interests, including interests in companies that acquire, manage, and sell timberland, and are invested over periods of typically three to five years, during which committed capital may be called. The University’s interests in private timber funds are considered to be relatively illiquid in that they are not easily transferable and typically achieve liquidity over extended, multi-year periods as the fund managers return invested capital or distribute proceeds realized from underlying fund assets. Note 5: Fair Value Measurements As of June 30, 2013 and 2012, the carrying values of the University’s inventories and deferred charges, accounts and notes receivable, contributions receivable, accounts payable, accrued expenses, deferred student and other revenue approximate their fair values because of the terms and relatively short maturity. An estimate of the fair value of student loan receivables administered by the University under federal government loan programs is not practical because the receivables can only be assigned to the United States government or its designees. Assets and liabilities that are reported at fair value on a recurring basis are categorized into a fair value hierarchy. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three levels of the fair value hierarchy are as follows: • • Level 1 - Quoted prices (unadjusted) in active markets for identical assets that the University has the ability to access at the measurement date. This level of the fair value hierarchy provides the most reliable evidence of fair value and is used to measure fair value whenever available. Instruments valued by Level 1 measures primarily consist of directly held securities that are actively traded in public markets. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs include quoted prices for similar investments in active markets; quoted prices for identical or similar assets - 15 - or liabilities in markets that are not active; inputs other than quoted prices that are observable; and inputs that are derived from observable market data by correlation or other means. Instruments valued by Level 2 measures include University holdings in certain structured debt obligations, University interests in certain commingled investment funds, interest rate swap agreements, certain fund investments for which NAV is used as a practical expedient, and other thinly-traded instruments. • Level 3 - Inputs that are unobservable for the asset or liability that are used to measure fair value when observable inputs are not available. These are inputs that are developed based on the best information available in the circumstances, which might include the University’s own data. Instruments valued by Level 3 measures primarily include University interests in certain fund investments for which NAV per share or its equivalent is used as a practical expedient. University investments for which NAV is used as a practical expedient to estimate fair value are classified as either Level 2 or 3 assets in the fair value hierarchy, depending on the University’s ability to redeem its interest in the fund. If the University’s interest can be redeemed without penalty within the near term (generally within 90 days of June 30), the University’s interest in the fund is classified as a Level 2 investment, otherwise, the University’s interest is classified as a Level 3 investment. Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s The following tables summarize the inputs used in valuing the University’s assets and liabilities carried at fair value at June 30, 2013 and 2012: 2013 Level 1 Level 2 Level 3 Total Assets (in thousands of dollars) Cash and cash equivalents $ 91,964 $ 104,843 $ - $ 196,807 Endowment investments: Cash and cash equivalents 56,607 1,488 - 58,095 Domestic equities416,635 430 -417,065 International equities441,914118,428 7,390567,732 U.S. government, corporate bonds, and other obligations 219,414 89,661 4,222 313,297 Marketable alternatives -251,831346,401598,232 Private equities/venture capital - - 561,120 561,120 Real assets - 58,003420,663478,666 Operating investments: U.S. government, corporate bonds, and other obligations 320,355 69,710 - 390,065 Other 737 - 16,784 17,521 Deposits of bond and note proceeds 42,399 48,004 - 90,403 Endowed funds held by third parties - - 19,954 19,954 Total assets $1,590,025 $ 742,398 $1,376,534 $3,708,957 Liabilities Interest rate swaps $ - $ 67,691 $ - $ 67,691 2012 Level 1 Level 2 Level 3 Total Assets (in thousands of dollars) Cash and cash equivalents $ 19,109 $ 28,642 $ - $ 47,751 Endowment investments: Cash and cash equivalents 30,517 42,549 - 73,066 Domestic equities315,262 10,457 -325,719 International equities376,751 83,664 7,364467,779 U.S. government, corporate bonds, and other obligations 224,484 71,180 2,803 298,467 Marketable alternatives -184,338273,995458,333 Private equities/venture capital - - 574,187 574,187 Real assets - 35,846402,090437,936 Operating investments: U.S. government, corporate bonds, and other obligations 511,596 102,600 - 614,196 Other 1,190 - 12,000 13,190 Deposits of bond and note proceeds 4,942 3,572 - 8,514 Endowed funds held by third parties - - 18,074 18,074 Total assets $1,483,851 $ 562,848 $1,290,513 $3,337,212 Liabilities Interest rate swaps $ - $ 109,127 $ - 16 - - $ 109,127 The following tables summarize the change in the Level 3 activity for the years ended June 30, 2013 and 2012: 2013 (in thousands of dollars) U.S. Government InternationalCorporate MarketableRealPrivate Equities and OtherAlternativesAssetsEquitiesOther Total Balance - June 30, 2012 $ 7,364 $ 2,803 $ 273,995 $ 402,090 $ 574,187 $ 30,074 $1,290,513 Capital calls/purchases 4,650 - 111,625 48,665 74,782 560 240,282 Distributions/sales (5,225) (296) (43,388) (60,583) (139,483) (784) (249,759) Transfers out - - (24,352) - - - (24,352) Realized losses (22) - - - - - (22) Unrealized gains 623 1,715 28,521 30,491 51,634 6,888 119,872 Balance - June 30, 2013 $ 7,390 $ 4,222 $346,401 $420,663$561,120$36,738$ 1,376,534 2012 (in thousands of dollars) U.S. Government InternationalCorporate MarketableRealPrivate Equities and OtherAlternativesAssetsEquitiesOther Total Balance - June 30, 2011 $ 12,084 $ 3,098 $ 304,350 $ 357,060 $ 552,904 $ 32,020 $1,261,516 Capital calls/purchases 1,855 - 60,000 58,923 70,564 953 192,295 Distributions/sales (4,558) (295) (35,757) (62,701) (91,635) (2,146) (197,092) Transfers out - - (52,306) - - - (52,306) Realized losses (184) - - - - - (184) Unrealized (losses) gains (1,833) - (2,292) 48,808 42,354 (753) 86,284 Balance - June 30, 2012 $ 7,364 $ 2,803 $273,995 $402,090$574,187$30,074$ 1,290,513 Gains and losses (realized and unrealized) for Level 3 activity are reported in other activities in the Consolidated Statements of Activities. The unrealized gains related to investments held at June 30, 2013 and 2012 were $118.3 million and $89.4 million, respectively. For the year ended June 30, 2013, $24.4 million of Level 3 assets were transferred to Level 2 as a result of the expiration of lock-up periods for three marketable alternatives funds; now these investments may be redeemed within 90 days of June 30. There were $52.3 million of Level 3 assets transferred to Level 2 in 2012 as a result of the expiration of lock-up periods for five marketable alternatives funds. There were no transfers of investments between Level 1 and Level 2 in 2013 and 2012. - 17 - Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s Note 6: Property, Plant, and Equipment, Net Property, plant, and equipment, net at June 30 is summarized below: 2013 2012 (in thousands of dollars) Land $51,352 $51,255 Buildings and improvements 2,586,824 2,517,555 Equipment663,045647,034 Library books246,905237,145 Works of art, historical treasures, and similar assets 17,174 14,836 Construction in progress 260,070 160,695 Subtotal3,825,3703,628,520 Less: Accumulated depreciation(2,036,895)(1,912,789) Total property, plant, and equipment, net $1,788,475 $1,715,731 The amount capitalized in property, plant, and equipment related to expenditures funded by the commonwealth on behalf of the University totaled $530.5 million and $526.7 million at June 30, 2013 and 2012, respectively. The net book value of these items was $226.3 million and $239.8 million at June 30, 2013 and 2012, respectively. Note 7: Conditional Asset Remediation Obligation The University has recognized liabilities for conditional asset retirement obligations. The University performed an analysis of such obligations and determined that asbestos remediation costs represented the primary source of such liabilities. The University reviewed facilities on all campuses and estimated the timing, method, and cost of remediation. The analysis included an estimated inflation factor and discount rate, which were used to determine the present value of the obligation. - 18 - The following table details the change in the liabilities for the year ended June 30: 2013 2012 (in thousands of dollars) Balance - beginning of year$40,946 Accretion 107 Liabilities settled (482) Balance - end of year $40,571 $40,859 576 (489) $40,946 Note 8: Bonds and Notes Payable Bonds and notes payable at June 30 are reported based upon outstanding principal and consist of the following: Range of Years Outstanding Principal Remaining 2013 Effective (in thousands of dollars) to Maturity Interest Rates 2013 2012 Variable-rate bonds: Series 2007-B Bonds 27-28 0.14%-0.20% $ 44,621 $ 44,621 Series 2005-B Bonds 18-25 0.13%-0.20% 45,000 45,000 Series 2005-C Bonds 19-22 0.14%-0.21% 30,000 30,000 Total variable-rate bonds 119,621 119,621 Term-rate bonds: Series 2005-A Bonds 24-26 5.00% 40,000 40,000 Series 2002-B Bonds 18-23 5.00% 15,000 15,000 Total term-rate bonds 55,000 55,000 Fixed-rate bonds and notes: Series 2009-A/B Bonds 1-18 3.18%-5.10% 373,140 398,140 Series 2007-B Bonds 10-15 4.28%-4.69% 60,000 60,000 Series 2005-A Bonds 15-17 4.69%-4.83% 35,000 35,000 Series 2002-A Bonds 2-10 2.68%-4.31% 30,000 35,000 Series 2002-B Bonds 13-14 4.53%-4.74% 14,500 14,500 Series 2000-A/B/C Bonds 3 mos.- 22 4.00%-5.07% 154,800 154,800 Series 2012 PANTHER Notes, due July 2, 2013 0.21% 120,000 120,000 Series 2013 PANTHER Notes, due July 11, 2014 0.18% 120,000 Noninterest-bearing promissory note 171 171 Total fixed-rate bonds and notes 907,611 817,611 Unamortized net premium 21,259 24,902 Total bonds and notes payable $1,103,491 $1,017,134 Fair value estimates of the variable-rate bonds are based upon quoted market prices and signify Level 1 liabilities of the fair value hierarchy, whereas fair value estimates of the term-rate bonds, fixed-rate bonds, and notes are based upon observable interest rates and maturity schedules, signifying Level 2 liabilities. The following are the fair value estimates at June 30: 2013 2012 (in thousands of dollars) Variable-rate bonds (Level 1) $ 119,621 $119,621 Term-rate bonds (Level 2) $ 55,613 $58,275 Fixed-rate bonds and notes (Level 2) $1,005,794$948,932 - 19 - The principal payments of bonds and notes payable for the next five years ending June 30 in millions of dollars are: 2014 2015 2016 2017 2018 $150.4 $155.0 $30.5 $27.4 $26.4 Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s The foregoing principal payments do not include $119.6 million of variable-rate demand bonds (VRDBs) in commercial paper (CP) mode, all of which have final maturity dates between 2031 and 2041. These bonds bear shortterm rates that are fixed over staggered periods of approximately 90 days each and are remarketed at the expiry of each rate period. Liquidity support for the $119.6 million of outstanding VRDBs in CP mode is provided by the University. In the event the University receives notice of an optional tender on its VRDBs in CP mode, the purchase price of the bonds will be paid from the remarketing of such bonds. However, if the remarketing proceeds are insufficient, the University will have a current obligation to purchase the tendered bonds. To provide a secondary source of liquidity for this type of event, the University entered into a $100.0 million unsecured standby liquidity agreement with a financial institution that matures in June 2016. Since the October 2009 effective date of the liquidity agreement, no draws have occurred. The $55.0 million of term-rate bonds have a mandatory tender date of September 16, 2013. On such date, the University may elect to convert the bonds to CP mode, a new term-rate mode, fixed-rate mode, or some combination thereof. - 20 - In June 2013, the University issued its Pitt Asset Notes Tax Exempt Higher Education Series 2013 (PANTHERS of 2013) in the amount of $120.0 million. Of this amount, $70.0 million was used to partially refund the $120.0 million of PANTHERS of 2012 that matured on July 2, 2013, and $50.0 million was used for equipment expenditures. The PANTHERS of 2013 mature on July 11, 2014. The PANTHERS of 2012 were issued in June 2012 in the amount of $120.0 million and were repaid on July 2, 2013. The University had three general unsecured credit facilities, aggregating $75.0 million, at June 30, 2013. No draws were made under the facilities during 2013 or 2012. Although each of the three credit facilities carry an expiry date of October 28, 2013, it is management’s intention to extend each facility for another 364-day term. Interest costs incurred in 2013 and 2012 were $44.8 million and $46.6 million, respectively. Included in these amounts is capitalized interest associated with various construction projects. Capitalized interest for 2013 and 2012 was $2.6 million and $1.3 million, respectively. Note 9: Derivative and Other Financial Instruments The University does not issue or trade derivative financial instruments except as described herein. University financial assets are invested on its behalf with various investment managers, some of whom are authorized to employ derivative instruments, including swaps, futures, forwards, and options. These derivatives are generally used for managing interest rate or foreign currency risk or to attain or hedge a specific financial market position. Additionally, the University has entered into various interest rate swap agreements to hedge its interest rate risk associated with certain debt obligations. University debt obligations had an aggregated fair value of $67.9 million and $109.1 million at June 30, 2013 and 2012, respectively, and are included in other liabilities on the Consolidated Balance Sheets (see Note 5). The fair value represents the estimated amount the University would be required to pay to terminate these agreements as of the respective fiscal year-end. The University recorded in the Consolidated Statements of Activities an unrealized gain of $41.2 million and an unrealized loss of $61.6 million in 2013 and 2012, respectively, due to changes in fair value of the swaps. The University may be exposed to financial loss should a derivative counterparty fail to perform pursuant to the instrument. In the case of exchange-traded derivatives, the counterparty is the exchange itself. In the case of over-the-counter derivatives, the counterparty is typically a financial institution. Counterparty risks are mitigated by using creditworthy counterparties, settling positions periodically, and requiring collateral to be posted at predetermined levels of exposure. The aggregate notional amount of the swap agreements associated with University debt was $425.7 million at June 30, 2013 and 2012, respectively. These swaps were entered into for the sole purpose of hedging interest payable on certain University VRDBs. The variable interest rates received by the University under the swap agreements are either 67% or 70% of one- or three-month LIBOR, while the fixed rates paid by the University range from 3.25% to 5.14%. Net swap payments made or received by the University are reported in interest expense in the Consolidated Statements of Activities. No collateral was called or posted during 2013 or 2012 with respect to these swap agreements. Furthermore, the University does not anticipate posting collateral pursuant to these swap agreements since the collateral thresholds applicable to the University are infinite at the University’s current credit ratings. Not including University derivative instruments held by various alternative investment funds, University financial assets invested in derivative instruments had a fair value, based upon Level 1 of the fair value hierarchy, of $24.4 million and $19.9 million at June 30, 2013 and 2012, respectively, which are included in endowment investments on the Consolidated Balance Sheets. The University liabilities arising from variable-to-fixed interest rate swap agreements associated with certain - 21 - Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s Note 10: Pension and Postretirement Obligations Pension The University provides retirement benefits under contributory or noncontributory plans to substantially all employees. The University’s contributory plan provides for participation in the Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF) and in investment funds of the Vanguard Group. The plan is fully funded and requires three years of service for vesting of the University contribution. Employees hired before January 1, 1995 were immediately vested. University contributions to this plan in 2013 and 2012 were $71.9 million and $70.6 million, respectively. The noncontributory plan is a defined benefit pension plan that covers employees who do not participate in the contributory plan. The plan provides for vesting after five years with pension benefits accruing at 2.1% of base salary or the Social Security wage base, whichever is lower. Pension benefits are payable upon normal retirement at age 65 or early retirement at age 55, in accordance with the conditions and pension eligibility criteria described in the plan. University contributions to this plan in 2013 and 2012 were $7.2 million and $2.7 million, respectively. Postretirement The University also provides postretirement medical and life insurance benefits to eligible employees and their spouses upon retirement through a contributory benefit plan. - 22 - Though funding is not required, the University has elected to fund the medical and life insurance portions of its postretirement liability via a quasi-endowment fund, which is managed together with the University’s pooled endowment investments (see Notes 4 and 11). The fair value of these investments at June 30, 2013 and 2012 was $279.4 million and $244.9 million, respectively, and is included in endowment investments in the Consolidated Balance Sheets. Although the University has established this quasi-endowment for the postretirement plan, payments to beneficiaries of this plan are currently made through nonendowed operating funds. Under the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, the federal government provides a subsidy to employers equal to 28% of the employer’s qualifying prescription drug costs for retirees if the plan offered by the employer is at least actuarially equivalent to Medicare Part D. The University is qualified for and receives the subsidy via a reduction in premiums charged by its provider. In 2010, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act (collectively, the Health Care Acts) were signed into law. The Health Care Acts include several provisions that are included in the measurement of the postretirement benefit obligation. The University uses a measurement date of June 30 for plan assets and the benefit obligations. Information related to the benefit obligation, assets, and funded status of the defined benefit pension plan and the postretirement benefit plan as of and for the years ended June 30, 2013 and 2012 is summarized in the table below: Defined Benefit Plan Postretirement Plan 20132012 2013 2012 (in thousands of dollars) Net periodic benefit cost: Service cost $ Interest cost Expected return on plan assets Actuarial loss Amortization of transition obligation Amortization of prior service credit Net periodic benefit cost $ Funded status: Benefit obligation at beginning of year Service cost Interest cost Actuarial (gain) loss Special termination benefit Benefits paid Benefit obligation at end of year 5,856 3,908 (4,303) 1,809 (53) 7,217 $ $ 3,570 3,562 (4,180) (224) 2,728 $ 87,482 $ 59,969 $ 5,856 3,570 3,908 3,562 (9,959) 20,981 - (718) (600) $ 86,569 $ 87,482 $ Fair value of plan assets at beginning of year Actual return on plan assets Actual plan contributions Benefits paid Fair value of plan assets at end of year $ 54,441 $ 52,854 7,280 (541) 7,217 2,728 (718) (600) $ 68,220 $ 54,441 Funded status - liability recognized in Consolidated Balance Sheets: Pension and postretirement obligations $ (18,349) $ (33,041) Accumulated benefit obligation $ 14,687 17,559 3,025 3,031 (3,965) $ 34,337 $ 10,746 17,471 516 3,031 (3,965) $ 27,799 398,916 $ 14,687 17,559 (26,615) - (16,071) 388,476 $ $ (388,476) 298,130 10,746 17,471 61,283 24,123 (12,837) 398,916 $ (398,916) $82,977 $83,404 Estimated 2014 employer contribution to the defined benefit plan: (in thousands of dollars) $4,431 - 23 - Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s Defined Benefit Plan 20132012 Postretirement Plan 2013 2012 Weighted-average assumptions used to determine the benefit obligation (liability) at June 30: Discount rate 5.0%4.5%5.0%4.5% Rate of compensation increase 3.0% Assumed health care trend cost: Initial trend - pre-age 65 retirees Initial trend - post-age 65 retirees Ultimate trend Year to reach ultimate 3.0% - - - - - - - 8.0% 8.0% -6.0%7.0% -4.5%4.5% - 2021 2020 Weighted-average assumptions used to determine the net periodic cost (expense) for the years ended June 30: Discount rate 4.5% 6.0%4.5%6.0% Rate of compensation increase 3.0% 3.0% - - Expected long-term return on plan assets 8.0% 8.0% - - Assumed health care trend cost: Initial trend - pre-age 65 retirees Initial trend - post-age 65 retirees Ultimate trend Year to reach ultimate - - - - Estimated future benefit payments: 2014 2015 2016 2017 2018 2019 - 2023 - 24 - - 8.0% 9.0% - 7.0% 10.0% -4.5%5.0% - 2020 2017 Defined Postretirement Benefit Plan Plan (in thousands of dollars) $ 1,571 $ 16,789 $ 1,776 $ 18,299 $ 1,990 $ 18,844 $ 2,256 $ 19,278 $ 2,561 $ 19,611 $ 17,974 $ 107,969 A one percentage point change in assumed health care cost trend rates would have the following effects on the postretirement plan: IncreaseDecrease (in millions of dollars) Revised PercentRevised Percent Amount ChangeAmount Change Service and interest cost (medical component only) Total periodic benefit cost Benefit obligation for health care benefits Total benefit obligation $ $ 31.8 38.3 7.9% 11.4% $ $ 25.8 28.3 12.6% 17.6% $ $ 376.6 414.5 7.4% 6.7% $ $ 314.5 352.3 10.3% 9.3% Pension Assets Assets related to the University’s defined benefit pension plan are segregated in a trust managed by a third-party investment manager. The fair value of these assets at June 30, 2013 and 2012 was $68.2 million and $54.4 million, respectively. The fund is invested through common collective trust funds in domestic and international equities and fixed income securities using the S&P 500 Index as a benchmark for domestic equities, the MSCI EAFE Index for international equities, and the Barclays Intermediate Government/Credit Bond Index for the fixed income securities. The specific investment objective is to meet or exceed the investment policy benchmark over the long term. Plan investments are determined using NAV per share as a practical expedient for estimated fair value and are classified in the fair value hierarchy as Level 2, as the University can redeem its interest without penalty, generally within 90 days of June 30. The long-term investment strategy for pension plan assets is to meet present and future benefit obligations to all participants and beneficiaries; cover reasonable expenses incurred to provide such benefits, including expenses incurred in the administration of the trust and the plan; provide sufficient liquidity to meet benefit and expense payment requirements on a timely basis; and provide a total return that, over the long term, maximizes the ratio of trust assets to liabilities by maximizing investment return, at an appropriate level of risk. The expected return on plan assets is based on a weighted average of - 25 - the individual expected return for each asset category in the plan’s portfolio. Expected return comprises inflation plus the real rate of return for each asset class. Over the long term, asset allocation is believed to be the single greatest determinant of risk and return. Asset allocation will deviate from the target percentages due to market movement, cash flows, and investment manager performance. Material deviations from the asset allocation target can alter the expected return and risk of the trust. However, frequent rebalancing to the asset allocation targets may result in significant transaction costs, which can impair the trust’s ability to meet its investment objective. Accordingly, the trust portfolio is periodically rebalanced to maintain asset allocations that approximate the targets shown below. Domestic equity International equity Fixed income Target Asset Allocation 35% 35% 30% The actual asset allocation as of June 30, 2013 and 2012 was 63% and 67%, respectively, for combined equities and 37% and 33%, respectively, for fixed income securities. Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s The fair value of the University’s pension plan assets at June 30, by asset category, was as follows: 2013 2012 (in thousands of dollars) Level 2 Level 2 Asset class Equity securities: Stock index $20,038 $17,268 Small cap 2,199 1,833 International 21,065 17,272 Debt securities 17,591 15,336 Cash and cash equivalents 7,327 2,732 Total $68,220 $ 54,441 In 2012, the University adopted a Voluntary Early Retirement Plan (VERP) for qualified staff who had completed at least 10 years of service and attained age 59 by April 1, 2012. Ultimately, 352 staff accepted the VERP option. The VERP included a separation payment equal to six-month’s pay, along with certain medical and other benefits for the staff, spouse, and dependent children. - 26 - The separation payment, along with accumulated vacation and sick-day payments, aggregated $11.1 million and was recognized in the fiscal 2012 Consolidated Statement of Activities and included in accrued payroll and related liabilities on the Consolidated Balance Sheet. The June 30, 2012 postretirement benefit obligation includes $24.1 million related to the accelerated vesting for the VERP. Note 11: Endowment Net Assets The commonwealth has not adopted The Uniform Prudent Management of Institutional Funds Act of 2006 (UPMIFA) and, instead, enacted in December 1998 Pennsylvania Act 141 (codified as Title 15 of the Pennsylvania Consolidated Statutes §5548(c) and referred to herein as “Title 15”) to govern the investment of restricted funds held in trust by Pennsylvania nonprofit corporations. Title 15 permits Pennsylvania nonprofit corporations to elect a total return approach for determining income distributions from restricted funds held in trust, whereby income is defined as a stipulated percentage of the value of the assets held; the stipulated percentage must be determined at least annually and may be no less than 2% nor more than 7%, and the value of the assets held must be averaged over a period of three or more preceding years. A resolution to elect a total return approach for determining endowment income distributions for the University’s consolidated investment pool was passed by the University’s Board of Trustees on October 21, 1999. The University’s endowment income distribution is determined annually using a stipulated per- centage of 4.25% of the endowment’s three-year average fair value, provided that such distribution is not less than the amount distributed in the previous year. The endowment income distribution amounts for 2013 and 2012 were approximately 4.45% and 4.68%, respectively, of the endowment’s three-year average fair value. Employing the total return approach, the University records the original value of an endowed contribution as a permanently restricted asset, along with any endowment income distributions that are reinvested in the endowment. Nonendowed funds that lack third party donor restrictions but function as endowments (quasiendowments) are classified as unrestricted net assets. Gains and losses attributable to donor-restricted endowed funds are recorded as temporarily restricted net assets, whereas gains and losses attributable to quasi-endowment funds are recorded as unrestricted net assets. Temporarily restricted net assets also include nonendowed contributions that are subject to third party donor restrictions with respect to purpose or time. The University’s endowment net assets at June 30 were as follows: 2013 Temporarily Permanently UnrestrictedRestricted Restricted (in thousands of dollars) Total Donor-restricted endowment funds $ - $ 648,930 $ 597,494 $ 1,246,424 Quasi-endowment funds 1,735,312-- 1,735,312 Total endowment net assets $1,735,312 $648,930 $597,494 $2,981,736 2012 Temporarily Permanently UnrestrictedRestricted Restricted Total (in thousands of dollars) Donor-restricted endowment funds $ - $ 583,459 $ 556,271 $ 1,139,730 Quasi-endowment funds 1,480,978 - - 1,480,978 Total endowment net assets $1,480,978 $ 583,459 $ 556,271 $2,620,708 - 27 - Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s The change in endowment net assets for the years ended June 30, 2013 and 2012 were as follows: 2013 Temporarily Permanently UnrestrictedRestricted Restricted Total (in thousands of dollars) Endowment net assets - beginning of year $1,480,978 $ 583,459 $ 556,271 $ 2,620,708 Endowment return: Endowment earnings 25,756 - 2,441 28,197 Gains 178,998 65,471 76 244,545 Total endowment return 204,754 65,471 2,517 272,742 Contributions 103 - 38,706 38,809 Distributions for operations (87,513) - - (87,513) Net transfers 136,990 - - 136,990 Endowment net assets - end of year $1,735,312 $ 648,930 $ 597,494 $ 2,981,736 2012 Temporarily Permanently UnrestrictedRestricted Restricted Total (in thousands of dollars) Endowment net assets - beginning of year $1,369,918 $ 618,607 $ 519,695 $ 2,508,220 Endowment return: Endowment earnings 23,649 - 1,651 25,300 Gains (losses) 54,792 (35,148) 874 20,518 Total endowment return 78,441 (35,148) 2,525 45,818 Contributions 32 - 34,051 34,083 Distributions for operations (82,595) - - (82,595) Net transfers 115,182-- 115,182 Endowment net assets - end of year $ 1,480,978 $583,459 $556,271 $ 2,620,708 Approximately 99 percent of the University’s endowment funds are collectively managed in a broadly diversified pool of assets called the consolidated investment pool. The Investment Committee of the Board of Trustees pro- - 28 - vides general oversight, policy guidance and performance review of the consolidated investment pool and approves asset allocation and spending policies. N o t e 12: F u n c t i o n a l E x p e n s e s The University accounts for expenses according to major classes of program services or functions. Functional expenses for the years ended June 30 consist of the following: 2013 2012 (in thousands of dollars) $ 526,347 $ 514,625 671,241 690,645 86,827 88,973 174,345 172,910 48,537 44,413 124,437 126,268 125,691 123,324 123,295 127,972 $1,880,720 $1,889,130 Instruction Research Public service Academic support Libraries Student services Institutional support Auxiliary enterprises Total functional expenses Costs related to the operation and maintenance of property, including depreciation of property and equipment and interest on related debt, are primarily allocated to program and support activities based upon salary effort. N o t e 13: R e l at e d P a rt i e s The University has relationships and affiliation agreements with separately incorporated entities including UPMC and affiliated hospitals and UPP. These relationships include a common paymaster arrangement for certain University School of Medicine (SOM) faculty with academic and clinical responsibilities; contractual obligations for UPMC and UPP to support certain educational and research functions at the University; and property rental agreements. Transactions with all related entities are conducted in the ordinary course of business and are discussed below. Certain University SOM faculty and staff provide clinical services through their University appointments to UPMC, UPP, and affiliated hospitals. The University invoices these entities monthly for reimbursement of the clinical portion of the associated compensation costs. SOM faculty members having both a University academic appointment and a separate, external appointment for clinical responsibilities participate in the common paymaster arrangement for purposes of determining appropriate FICA taxation. In addition to the reimbursable compensation costs, the University also engages in other - 29 - transactions with these entities, which include providing certain facilities-related services, telephone, mailing, printing, and various other services, which are reimbursed at cost. Reimbursements from UPMC, UPP, and affiliated hospitals for clinical compensation and other costs totaled $137.2 million and $128.6 million in 2013 and 2012, respectively. In 1998, the University signed a 10-year agreement with UPMC that included financial commitments designed to further the two entities’ commitment to their interrelated teaching, research, clinical care, and community service missions. As part of the agreement, UPMC provides $12.5 million annually in funding for the SOM. UPMC also provides additional funding up to $2.5 million annually on a matching basis. The match is on a one-to-two basis with UPMC matching $1 for every $2 provided by the University to support health sciences programs. The University has received this match each year since the inception of the agreement. This agreement was amended in 2007 under essentially the same terms, except for a provision to provide an additional $10.0 million per year in 2007, increased annually by $0.5 million Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s from 2008 through 2016. The University received $28.0 million and $27.5 million (including the annual match) in 2013 and 2012, respectively. These amounts are reported as other revenue in the Consolidated Statements of Activities. UPMC also provided $13.4 million and $13.1 million in 2013 and 2012, respectively, of contractual dean’s tax, which represents support for the academic and research activities of the SOM. This activity is reported as sales and services, educational and other in the Consolidated Statements of Activities. The agreement was further amended in 2009 to include additional financial support from UPMC through the Children’s Hospital of Pittsburgh of UPMC (CHP) to the University of at least $7.5 million annually related to an agreement detailing the transfer of certain pediatric research programs from CHP to the University. This transfer standardized procedures, eliminated duplication of services, improved efficiency, reduced costs, and enhanced recruitment efforts for pediatric programs. The University received $9.6 million and $8.8 million in 2013 and 2012, respectively, related to this additional support. These amounts are reported as sales and services, educational and other in the Consolidated Statements of Activities. UPMC also provides additional academic support to the School of Medicine. These funds are used to support new programs, recruit faculty, and for general support of the School’s academic mission. The University recorded $37.7 million and $32.1 million in 2013 and 2012, respectively. These amounts are reported as sales and services, educational and other in the Consolidated Statements of Activities. Additionally, UPMC provided support to various departments within the SOM to augment their operating budgets. These payments were made to those departments which do not generate sufficient revenues to meet their research and academic costs. Payments made by UPMC for this purpose totaled $8.6 million in both 2013 and 2012, and are reported as sales and services, educational and other in the Consolidated Statements of Activities. The University is involved in certain rental arrangements where the University acts as both lessor or lessee with - 30 - UPMC and its affiliates. Rental revenue from UPMC and affiliates totaled $10.2 million and $9.9 million in 2013 and 2012, respectively. Rent expense paid to UPMC and affiliates totaled $24.7 million and $24.6 million in 2013 and 2012, respectively. UPMC serves as the provider of health insurance coverage to all eligible University employees who enroll in the plan. The University is self-insured for these costs and reimburses UPMC for actual claims cost. Health insurance expense including administrative fees totaled $105.7 million and $110.8 million in 2013 and 2012, respectively, and is reported as fringe benefits on the Consolidated Statements of Activities. UPMC receives federal matching funds for costs incurred by academic medical centers for medical assistance services. The funds are remitted to the University to support the activities of the SOM, the Western Psychiatric Institute and Clinic (WPIC), the Center for Public Health Practice, and the clinic within the School of Dental Medicine. These remittances were $8.2 million and $8.4 million in 2013 and 2012, respectively, and are reported as commonwealth appropriation revenue in the Consolidated Statements of Activities. In 2003, the University and UPMC created the Medical and Health Sciences Foundation (MHSF), a separate 501(c)(3) organization. The mission of MHSF is to create a unified fundraising organization for the University’s schools of the health sciences and UPMC. The arrangement calls for the cost of MHSF to be split evenly between the University and UPMC. In 2013 and 2012, UPMC’s share of total operating costs for MHSF totaled $4.4 million and $4.0 million, respectively, and is reported as other revenue in the Consolidated Statements of Activities. All contributions generated by MHSF are credited to the University or UPMC based upon donor intent. In November 2004, the University entered into an agreement with UPMC to jointly construct and own the Carillo Street steam plant, a gas-fired steam-generating facility. The plant provides steam to each entity’s respective buildings and is managed by the University. The University maintains an ownership interest of 78.1%, with UPMC having an ownership interest of 21.9%. A lease arrangement exists between the University and the commonwealth for WPIC. Since 1949, the University has managed WPIC under an agreement between the University and the commonwealth whereby the University rents for a consideration of $1 per year the land, building, equipment, and other items that are used by WPIC. The agreement provides for continuing terms of 10 years each; however, this agreement is cancelable by either party on one year’s written notice. In 1992, the University subleased to UPMC the land, building, equipment, and other items subject to the current lease arrangement between the commonwealth and the University. This sublease arrangement continued to be in effect during 2013 and 2012. Included in property, plant, and equipment is $194.9 million and $197.9 million at June 30, 2013 and 2012, respectively, related to the land, buildings, and equipment used by WPIC. Accumulated depreciation related to these assets totaled $156.7 million and $157.0 million at June 30, 2013 and 2012, respectively. - 31 - The University also has an arrangement with UPMC whereby certain research-related costs incurred by UPMC (primarily staff compensation) in relation to WPIC and the University of Pittsburgh Cancer Institute (UPCI) research awards are charged to such awards via an electronic billing and reimbursed to UPMC each month. Payments totaled $30.4 million in 2013 and $33.6 million in 2012 and are recorded as expenses in the Consolidated Statements of Activities. All billings are recorded at cost. UPMC provided support payments to UPCI for various subsidies, research initiatives, and general support. These payments totaled $10.6 million and $11.1 million in 2013 and 2012, respectively, and are primarily reported in other revenue in the Consolidated Statements of Activities. Notes to C o n s o l i d at e d F i n a n c i a l S tat e m e n t s N o t e 14: C o m m i t m e n t s and Contingencies At June 30, 2013 and 2012, the University had outstanding contractual commitments of $57.0 million and $136.6 million, respectively, for property, plant, and equipment expenditures. The University engages in various leasing activities as both a lessor and lessee. Rental revenue from operating leases was $18.4 million and $18.2 million in 2013 and 2012, respectively. Rental expense for operating leases was $47.5 million in 2013 and $48.7 million in 2012. Minimum future rental revenue and expense under operating leases that have initial or remaining noncancelable lease terms for the years ended June 30 are as follows: Rental Revenue Rental Expense As part of ongoing operations, the University enters into utility contracts to secure electric and natural gas rates. These contracts are with various utility suppliers and some of the contracts cover multiple years. The University monitors the energy markets on an ongoing basis, and will make commitments on new rates if deemed in the best interest of the University. (in thousands of dollars) 2014 2015 2016 2017 2018 Thereafter $17,141 $15,514 $14,763 $ 5,400 $ 4,362 $ 11,681 provide for the recovery of direct and indirect costs. Recovery of indirect costs is recorded at predetermined rates negotiated with the federal government. Entitlement to these resources for the recovery of the applicable direct and related indirect costs is generally conditioned upon compliance with the terms and conditions of the grant agreements and applicable federal regulations, including the expenditure of the resources for eligible purposes. Substantially all grants and the University’s indirect cost rate are subject to financial and compliance reviews and audits by the grantors. In management’s opinion, the likelihood of a material adverse outcome upon the University’s financial position from those reviews and audits is remote. $ 42,747 $ 39,622 $ 27,239 $21,657 $20,436 $ 137,225 The University is a defendant in a number of legal actions seeking damages and other relief from the University. While the final outcome of each action cannot be determined at this time, legal counsel and University management are of the opinion that the liability, if any, in these legal actions will not have a material adverse effect on the University’s consolidated financial statements. The University receives significant financial assistance from the federal government including the sponsorship of federal research projects. Grants and contracts normally The University conducts a review of contracts and agreements that may contain guarantees, including loan guarantees such as standby letters of credit and indemnifications. In certain contracts, the University agrees to indemnify a third-party service provider under certain circumstances. Pursuant to its bylaws, the University provides indemnification to directors, officers and, in some cases, employees and agents against certain liabilities incurred as a result of service provided on behalf of or at the request of the University. The terms of indemnity vary from agreement to agreement, and the amount of indemnification, if any, cannot be reasonably determined. N o t e 15: S u b s e q u e n t E v e n t s The University has evaluated subsequent events through September 17, 2013, the date on which the consolidated financial statements were issued, and determined that there were no subsequent events requiring disclosure or adjustment to the consolidated financial statements. - 32 - Membership of the Members Ex-Officio ( N on v o t i n g ) Tom Corbett, Governor of the Commonwealth of Pennsylvania Board of T r u s t e e s F i s c a l Y e a r 2013 2011 – 15 Charles E. Bunch Robert G. Lovett Martha Hartle Munsch Stephen R. Tritch Ronald J. Tomalis, Secretary of Education of the Commonwealth of Pennsylvania 2012 – 16 Eva Tansky Blum Catherine D. DeAngelis Brian Generalovich Marlee S. Myers Robert P. Randall Rich Fitzgerald, Chief Executive of Allegheny County Special Trustees Luke Ravenstahl, Mayor of the City of Pittsburgh Members Ex-Officio (Voting) Mark A. Nordenberg, Chancellor and Chief Executive Officer Term Trustees 2009 – 13 Suzanne W. Broadhurst Dawne S. Hickton Charles M. Steiner 2010 – 14 Robert M. Hernandez John A. Swanson Burton M. Tansky Sam S. Zacharias 2009 – 13 Roberta A. Luxbacher Susan P. McGalla Robert A. Paul Thomas E. Richards 2010 – 14 Mary Ellen Callahan Terrence P. Laughlin William E. Strickland Jr. Thomas J. Usher 2011 – 15 G. Nicholas Beckwith III John H. Pelusi Jr. Emil M. Spadafore Jr. A. David Tilstone 2012 – 16 David C. Chavern Brenton L. Saunders Tracey T. Travis A l u mn i T r u s t e e s 2009 – 13 Bobbie Gaunt Bryant J Salter 2010 – 14 F. James McCarl III Keith E. Schaefer 2011 – 15 Michael A. Bryson 2012 – 16 Jack D. Smith C ommon w e a l t h Trustees G: Governor appointment H: House appointment S: Senate appointment 2009 – 13 Sy Holzer (G) William K. Lieberman (S) Thomas L. VanKirk (H) 2010 – 14 John A. Maher III (H) Morgan K. O’Brien (G) John J. Verbanac (S) Emeritus Trustees Ruggero J. Aldisert J. David Barnes Steven C. Beering Thomas G. Bigley Frank V. Cahouet John G. Conomikes George A. Davidson Jr. Herbert P. Douglas Jr. Helen S. Faison D. Michael Fisher E. Jeanne Gleason J. Roger Glunt Henry L. Hillman Earl F. Hord A. Alice Kindling Paul E. Lego George L. Miles Jr. Frank E. Mosier Alfred L. Moyé H. Lee Noble Thomas H. O’Brien Anthony J.F. O’Reilly James C. Roddey Farrell Rubenstein Richard P. Simmons Dick Thornburgh Edward P. Zemprelli 2011 – 15 John A. Barbour (G) Herbert S. Shear (H) Peter C. Varischetti (S) 2012 – 16 Jay Costa, Jr. (S) Ira J. Gumberg (G 2008-2012) John Wright Joyce (H 2008-2012) The consolidated financial statements have been reviewed and approved by the University’s Audit Committee. The Audit Committee is comprised of outside directors having requisite financial expertise and meets regularly with University management and both internal and external auditors to review internal accounting controls, audit issues, and financial reporting matters. The committee meets with the external auditors in private sessions and is also responsible for approving the independent auditing firm retained each year. Nonvoting representatives on the committee include members of the University’s administration as well as student, faculty, and staff representatives. - 33 - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND OMB CIRCULAR A-133 REPORTS UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title CFDA Number Agency or Pass-Through # Federal Expenditures I. RESEARCH & DEVELOPMENT CLUSTER (excluding ARRA): Department of Health and Human Services: National Institutes of Health: Direct: Family Smoking Prevention and Tobacco Control Act Regulatory Research Environmental Health Oral Diseases and Disorders Research Human Genome Research Research Related to Deafness and Communication Disorders Research and Training in Complementary and Alternative Medicine National Center on Sleep Disorders Research Mental Health Research Alcohol Research Programs Drug Abuse Scientist Development Award and Research Scientist Awards Drug Abuse and Addiction Research Programs Mental Health Research Career/Scientist Development Awards Mental Health National Research Service Awards for Research Training Discovery and Applied Research for Technological Innovations to Improve Human Health Minority Health and Health Disparities Research Trans-NIH Research Support National Center for Advancing Translational Sciences Research Infrastructure Programs Nursing Research National Center for Research Resources Cancer Cause and Prevention Research Cancer Detection and Diagnosis Research Cancer Treatment Research Cancer Biology Research Cancer Centers Support Grants Cancer Research Manpower Cancer Control Cardiovascular Diseases Research Lung Diseases Research Blood Diseases and Resources Research Arthritis, Musculoskeletal & Skin Diseases Research Diabetes, Digestive, and Kidney Diseases Extramural Research Digestive Diseases and Nutrition Research Kidney Diseases, Urology & Hematology Research Extramural Research Programs in the Neurosciences and Neurological Disorders Allergy, Immunology & Transplantation Research 35 93.077 93.113 93.121 93.172 93.173 $ 1,565,229 5,129,753 9,386,844 (563) 3,663,362 93.213 93.233 93.242 93.273 1,710,123 484,773 39,374,192 7,716,723 93.277 93.279 419,049 15,778,426 93.281 2,135,366 93.282 1,316,525 93.286 93.307 93.310 93.350 93.351 93.361 93.389 93.393 93.394 93.395 93.396 93.397 93.398 93.399 93.837 93.838 93.839 93.846 93.847 93.848 93.849 4,268,382 33,299 212,800 1,282,297 3,249,758 6,578,985 14,819,739 11,329,541 2,290,004 17,512,541 5,566,974 12,600,851 1,746,367 (16,254) 28,774,976 22,532,617 1,910,167 7,001,252 47,161,320 951,919 (25,377) 93.853 93.855 20,041,648 43,107,187 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Microbiology & Infectious Diseases Research Biomedical Research and Research Training Child Health and Human Development Extramural Research Aging Research Vision Research Medical Library Assistance International Research and Research Training Other National Institutes of Health: Aging Allergy and Infectious Diseases Cancer Child Health and Human Development Environmental Health Sciences Heart, Lung & Blood Library of Medicine Pass-through: Albert Einstein College Altarum Institute American College of Radiology Brigham & Women's Hospital Case Western Reserve University Children's Hospital of Philadelphia Children's Hospital of Philadelphia Coalition of Cancer Duke University Emmes Corporation Evanston Northwestern Healthcare Research Institute Institute for Transfusion Medicine J. Craig Venter Institute Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Mayo Clinic Rochester Ohio State University Rho Federal Systems Division, Inc. RTI International SAIC-Frederick, Inc. SAIC-Frederick, Inc. SAIC-Frederick, Inc. Systems Research and Applications Corporation University Health Network University of Alabama University of Alabama University of Alabama University of Alabama University of California at San Francisco University of California at San Francisco CFDA Number Federal Expenditures 93.856 93.859 1,957,688 27,712,657 93.865 93.866 93.867 93.879 93.989 14,456,655 25,793,412 5,438,634 3,135,857 1,645,155 93.000 93.000 93.000 93.000 93.000 93.800 93.000 35,568 2,418,453 380,997 683,491 904 3,776,861 16,915 429,064,042 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 36 Agency or Pass-Through # EARLY AWARD HHSN271201100111U 5U10 CA080098-14 EARLY AWARD HHSN275200503406C HHSN261200800001E HHSN272200900022C HHSN261200622012C HHSN272201100025C HHSN260200500007C HHSN260200600007C HHSN2682011000041 HHSN272200900007C HHSN275200900091U HHSN275201100043U HHSN275201100049U N01CN35000 HHSN268201100002C N01AI25482 1U24 GM087704 25XS047 HHSN261200800001E N01CO12400 N01ES55553 HHSN272201000031I HHSN260200500008C HHSN263201200010C HHSN268201100025C N01AI30025 HHSN271201200008C N01AG62106 193,470 99,032 9,799 18,070 54,871 37,121 671,652 927,340 4,021 70,802 6,739 70,929 109,713 9,638 49,685 16,882 18,966 180,348 31,961 29,343 174,279 2,505,901 138,729 34,010 341,337 (265) 35,204 72,823 11,827 42,390 105,573 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title University of California at San Francisco University of Florida University of Michigan University of Minnesota University of Minnesota University of South Florida University of South Florida University of Texas University of Texas MD Anderson Cancer Center University of Utah Westat, Inc. Trevigen, Inc. Brown University Magee-Women's Research Institute & Foundation Massachusetts Institute of Technology Mt. Sinai School of Medicine Boston University Forsyth Institute Forsyth Institute Johns Hopkins University Massachusetts Institute of Technology University at Buffalo University of Iowa University of Iowa University of Iowa University of Iowa University of Washington Vanderbilt University Vanderbilt University Fred Hutchinson Cancer Research Center University of Iowa Arizona State University Carnegie Mellon University Etymotic Research, Inc. Intelligent Hearing Systems Neuro Kinetics, Inc. Vanderbilt University Medical Center Carnegie Mellon University Group Health Cooperative Massachusetts General Hospital University of North Carolina California Pacific Med Center Research Institute Cleveland Clinic Lerner College of Medicine Duke University Magee-Women's Research Institute & Foundation Autism Speaks Beth Israel Deaconess Medical Center Beth Israel Deaconess Medical Center Brigham & Women's Hospital CFDA Number 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.000 93.111 93.113 93.113 93.113 93.113 93.121 93.121 93.121 93.121 93.121 93.121 93.121 93.121 93.121 93.121 93.121 93.121 93.121 93.172 93.172 93.173 93.173 93.173 93.173 93.173 93.173 93.213 93.213 93.213 93.213 93.233 93.233 93.233 93.233 93.242 93.242 93.242 93.242 37 Agency or Pass-Through # N01AI15416 HHSN26620070023C HHSN268201100026C N01DK70004 HHSN276201200017C HHSN267200800019C HHSN267200700014C HHSN26820090039C02 HHSN26820090039C HHSN275201000018C HHSN261201100008C 1R43 ES021116-01 1R01 ES019955 5R01 ES011597-11 1R21 ES019498-01 1R21 ES021429-01 5R01 DE011939-14 1R01 DE023091-01 2R56 DE016376-06A1 5R01 DE021395-03 5R01 DE019523-13 R01 DE019424 5R37 DE008559-22 5U01 DE020057-03 5U01 DE020057-04 5U01 DE020057-05 5U01 DE020050-04 1R03 DE022093-01 5R03 DE022093-02 5U01 HG005152-03 1U01 HG005925-01 5R01 DC008329-05 R01 DC011184 1R44 DC010971-01 1R41 DC011236-01 1R43 DC011984-01A1 5T35 DC008763-07 1R01 AT006694-01 1UH2 AT007755-01 5U01 AT000613-11 5R21 AT003892-03 5R01 HL071194-10 HHSN268200700036C 5R01 HL096492-03 1R01 HL105549-02 3R01 MH081754-05S1 1R01 MH092440-01A1 5R01 MH092440-02 5R01 MH091448-02 Federal Expenditures (25) 33,443 96,931 16,645 56,510 14,275 4,163 22,800 2,498 231,406 16,615 22,401 24,877 27,976 83,246 81,975 4,474 4,293 11,221 18,919 73,277 109,815 98,710 42,205 1,061,992 80,982 70,135 10,651 11,771 1,904 (1,801) 110,512 126,862 6,705 14,190 41,253 3,672 53,954 31,280 6,821 47,363 222,551 39,650 42,321 59,550 14,719 165,977 12,807 9,777 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Carnegie Mellon University Duke University Duke University Harvard Medical School Johns Hopkins University Johns Hopkins University Miriam Hospital Rand Corporation Rand Corporation Research Foundation for Mental Hygiene, Inc. Research Foundation for Mental Hygiene, Inc. Stanford University University of Alabama University of California at Los Angeles University of California San Diego University of Chicago University of Chicago University of North Carolina University of Pennsylvania University of Rochester University of Rochester University of Texas at San Antonio University of Texas Southwestern Medical Center University of Texas Southwestern Medical Center Yale University Boston Medical Center Boston Medical Center Boston Medical Center Louisiana State University Louisiana State University New York University New York University School of Medicine Rhode Island Hospital Yale University Yale University Yale University Yale University American Academy of Child & Adolescent Psychiatry American Academy of Child & Adolescent Psychiatry American Academy of Child & Adolescent Psychiatry Carnegie Mellon University Carnegie Mellon University Duke University Duke University Florida International University Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Nova Southeastern University Oregon Health & Science University CFDA Number 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.242 93.273 93.273 93.273 93.273 93.273 93.273 93.273 93.273 93.273 93.273 93.273 93.273 93.277 93.277 93.277 93.279 93.279 93.279 93.279 93.279 93.279 93.279 93.279 93.279 38 Agency or Pass-Through # 2R01 MH068243-05A1 1R34 MH091314-01A1 5R01 MH084941-02 1R01 MH093359-02 1R01 MH087233-02 5R01 MH065539-06 5R01 MH092450-02 5R01 MH087488-03 7R34 MH091319-02 5R01 MH085921-02 5R01 MH085921-03 5R01 MH078924-03 5R01 MH083756-03 1R01 MH078773 5U01 MH087981-04 5R01 MH093605-02 7R01 MH066302-09 5R01 MH080065-04 5R01 MH082794-02 1P50 MH086400-03 5P50 MH086400-04 1R21 MH097092-01 5U01 MH082221-02 5U01 MH092221-03 1R21 MH090920-01A1 1U01 AA020780 1U01 AA020780-01 1U01 AA021989 5P60 AA009803-19 5P60 AA009803-20 5R01 AA017385-05 1U24 AA022007-01 1R01 AA021900-01 1U01 AA020790-01 1U24 AA020794-01 5U01 AA020790-02 5U24 AA020794-02 5K12 DA000357-14 5K12 DA000357-15 5K12 DA000357-13 2R90 DA023426-06 5R90 DA023426-07 1R01 DA033080-01A1 1R21 DA033083-01A1 5R01 DA012414-10 3R01 DA026410-03S1 5R01 DA026410-03 5R01 DA024579-06 5R01 DA024041-06 Federal Expenditures 27,551 7,300 (4,674) 143,343 19,285 23,837 13,576 110,079 55,806 (1,791) 121,148 168,272 28,435 (254) 25,156 518,191 98,544 121,814 124,559 (2,353) 384,997 6,943 10,229 598,984 9,746 9,858 16,091 77,589 14,185 1,664 4,599 24,158 5,628 2,704 3,655 19,018 29,388 178,950 10,497 (9,846) 30,952 29,710 21,657 15,353 68,819 5,614 216,411 20,066 22,672 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Rand Corporation Rutgers University Rutgers University University of California at San Francisco University of Michigan University of Washington Carnegie Mellon University Carnegie Mellon University Program for Appropriate Technology in Health University of Cincinnati University of Michigan University of Oregon University of Maryland Carnegie Mellon University Massachusetts Institute of Technology Massachusetts Institute of Technology Oregon Health & Science University Columbia University Duke University University of North Carolina Emory University Carnegie Mellon University Carnegie Mellon University Magee-Women's Research Institute & Foundation Pittsburgh Tissue Engineering Initiative Stanford University University of Michigan Duke University Fred Hutchinson Cancer Research Center Fred Hutchinson Cancer Research Center Fred Hutchinson Cancer Research Center Health Research, Incorporated Health Research, Incorporated Health Research, Incorporated Northeastern University Ohio State University Ohio State University Ohio State University Oregon Research Institute Rand Corporation Rand Corporation St. Jude Children's Research Hospital University of California University of Hawaii University of Minnesota University of Minnesota University of North Carolina Virginia Commonwealth University World Health Organization CFDA Number 93.279 93.279 93.279 93.279 93.279 93.279 93.286 93.286 93.286 93.286 93.286 93.286 93.307 93.310 93.310 93.350 93.351 93.361 93.361 93.361 93.385 93.389 93.389 93.389 93.389 93.389 93.389 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 93.393 39 Agency or Pass-Through # R01 DA032881 1R01 DA033303-01 5R21 DA026511-02 5R01 DA002277-32 2R01 DA001411-39 5R01 DA015183-10 1R21 EB012209-01A1 5R01 EB004343-06 U01 EB012495 5U54 EB007954-05 2R01 EB012579-04 1R01 EB007684-01A2 7P60 MD000207 8U54 RR022241-08 5R01 EB010246-02 1UH2 TR000496-01 1R24 OD011883-01 1R01 NR13687-01 5P01 NR010948-05 3R01 NR011464-03S1 1R01 CA165306-01 3P41 RR006009-20S1 U54 RR022241 1R21 RR031300-03 5R25 RR023286 5UL1 RR025744 3UL1 RR024986-05 5R01 CA100387-07 1U01 CA164930-01A1 5U01 CA137088-03 5U01 CA137088-04 5R01 CA126841-03 5R01 CA126841-04 7R01 CA132844-04 1R03 CA171809-01 1P01 CA163205-01 1P01 CA163205-01A1 R01 CA090787 5R01 CA140310-02 5R01 CA149105-03 R01 CA149105 5R01 CA132901-04 5R01 CA140216-03 7U01 CA130784-05 R01 CA122244 R01 CA127236-04 1R01 CA150980-01A1 5R01 CA120142-05 1U01 CA155340-01A1 Federal Expenditures 23,422 34,055 (11) 15,596 45,996 25,030 28,395 85,773 21,055 41,672 216,304 26,551 13,364 197,024 117,823 456,675 78,572 70,744 44,044 1,543 30,716 1,640 17,854 104,352 10,564 (13,534) (2,869) 118,043 7,031 1,510 15,347 (7,784) 121,173 30,001 3,641 58,692 113,598 (10,677) 76,453 8,465 (478) 77,683 30,610 18,976 117,266 84,639 106,526 15,903 178,120 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Boston University California Pacific Med Center Research Institute California Pacific Med Center Research Institute Carnegie Mellon University Cedars-Sinai Medical Center Johns Hopkins University Johns Hopkins University Lovelace Respiratory Research Institute Lovelace Respiratory Research Institute NSABP Foundation, Inc. NSABP Foundation, Inc. NSABP Foundation, Inc. University of Nebraska Medical Center University of Nebraska Medical Center University of New Hampshire University of Oklahoma University of Rochester University of Texas Health Science Center University of Washington University of Washington Van Andel Institute Van Andel Institute Van Andel Institute Van Andel Institute Brigham & Women's Hospital Brigham & Women's Hospital Children's Hospital Medical Center Cincinnati Children's Hospital Medical Center Duke University Emmes Corporation Frontier Science & Technology Research Foundation GeneCopoeia Inc. Gynecologic Oncology Group Gynecologic Oncology Group Johns Hopkins University Johns Hopkins University Johns Hopkins University Magee-Women's Research Institute & Foundation Northwestern University Northwestern University Northwestern University NSABP Foundation, Inc. NSABP Foundation, Inc. Platypus Technologics, LLC St. Jude Children's Research Hospital St. Jude Children's Research Hospital University of Michigan University of Rochester University of Rochester CFDA Number 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.394 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 40 Agency or Pass-Through # 5R01 CA130853-05 2R01 CA114337-07A1 5R01 CA114337-08 5R01 CA134633-04 5R01 HL090957-04 5U01 CA152753-02 5U01 CA152753-03 5R01 CA097356-07 5R01 CA097356-08 5U24 CA114732-05 5U24 CA114732-07 5U24 CA114732-08 5R01 CA131944-03 5R01 CA131944-05 5R01 CA093375-10 1R01 CA115320-01A1 5R01 CA130853-05 U01 CA086402 5P01 CA042045-23 5U01 CA148131-03 1U01 CA152653-01 1U01 CA152653-02 1U01 CA168896-01 5U01 CA152653-02 7U10 CA031946-31 7U10 CA031946-32 5R01 CA119162-05 5R01 CA119162-06 5R01 CA131148-03 2U01 CA121947-04 5U10 CA021115-38 2R44 CA124001-03 5U10 CA027469-32 U10 CA027469 1U01 CA137443-01 U01 CA137443 U01 CA137443-01 5R01 CA163462-02 2P50 CA090386-06A2 5P50 CA090386-10 P50 CA090386 5U10 CA012027-41 U10 CA12027 5R21 CA147985-02 5U24 CA055727-18 5U24 CA055727-19 1R01 CA148713-01 1R01 CA159013-01A1 2R01 CA159013-02 Federal Expenditures 38,839 20 8,443 136,920 96,933 (314) 215,751 (3,957) 17,629 (3,537) 107,848 9,916 (6,514) 49,440 131,750 49,142 44,985 97,641 3,109 23,970 (2) 89,707 71,129 13 33,792 8,059 7,300 14,584 141,098 4,988 24,388 (6,431) 33,928 17,502 26,220 7,175 92,654 213,510 (438) 10,978 194,963 174,641 191,165 47,743 5,250 2,686 64,676 15,124 4,932 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title University of Texas Health Science Center Virginia Commonwealth University Yale University H. Lee Moffitt Cancer Center & Research Institute University of Nebraska Medical Center University of Nebraska Medical Center Wistar Institute Baylor College of Medicine Johns Hopkins University University of Texas MD Anderson Cancer Center Magee-Women's Research Institute & Foundation Robert Wood Johnson Medical School-UMDNJ University of Pennsylvania Beth Israel Deaconess Medical Center Brown University Carnegie Mellon University Case Western Reserve University Celsense, Inc. Claremont Graduate University Clemson University Johns Hopkins University Johns Hopkins University LIG Sciences, Inc. Loma Linda University Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Massachusetts General Hospital Massachusetts General Hospital New England Research Institute New England Research Institute New York University School of Medicine Northwestern University Northwestern University Rand Corporation Transonic Systems, Inc. University of Iowa University of Iowa University of Iowa University of Iowa University of Louisville University of Michigan University of Michigan University of Michigan University of Minnesota University of Minnesota University of Minnesota University of Pennsylvania University of Pennsylvania University of Pennsylvania CFDA Number 93.395 93.395 93.395 93.396 93.396 93.396 93.396 93.397 93.397 93.397 93.398 93.398 93.399 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 41 Agency or Pass-Through # 7R21 CA130241-03 1R01 CA149305-01A1 1P01 CA154295-01A1 1R01 CA165065-01A1 5R01 CA140940-03 5R01 CA140940-04 1R01 CA165065-01A1 5P50 CA058183-18 5P50 CA088843-09 5P50 CA097007-09 5R25 CA163168-02 5R01 CA156386-07 5P50 CA143187-04 5R01 HL091757-05 5R01 HL093093-04 5R01 HL078839-06 5U01 HL103622-03 1R41 HL116014-01 1U01 HL097839-03 2R01 HL070969-05A1 5R01 HL095129-04 5R01 HL103946-02 5R44 HL106929-03 1R01 HL095973-01A1 5R01 HL091094-03 5R01 HL103825-03 3R01 HL111821-01S1 5R01 HL111821-02 5U01 HL098188-04 U01 HL098188 5R01 HL058541-15 5U01 HL080416-03 U01 HL080416-01A1 7R01 HL112646-03 1R43 HL111852-01 1R01 HL091841-03 5R01 HL091841-04 5R01 HL091841-05 8DP1 OD003819-05 5R01 HL085777-04 1R01 HL105114-02 5U01 HL094345 U01 HL094345 1R01 HL103927-01A1 1R21 HL104596-01A1 5R01 HL103827-03 1R01 HL103723-01A1 1R01 HL115041-01 5R01 HL103723-02 Federal Expenditures 4,244 41,228 128,507 83,134 7,677 4,915 25,821 40,145 68,119 31,143 185,389 22,971 268,045 5,570 266,620 53,302 15,168 72,152 5,816 1 233,909 3,288 143,908 20,228 163,972 223,416 80,749 134,888 6,543 20,492 40,158 4,425 (4,038) 162,041 71,361 (3) 18,020 4,541 100,876 (680) 151,788 488 48,166 18,135 5,424 20,716 (1,665) 13,877 32,782 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title University of Pennsylvania University of Rochester University of Utah University of Washington University of Washington University of Washington University of Washington University of Washington Wake Forest University Yale University Albert Einstein College Carnegie Mellon University Carnegie Mellon University Duke University Emory University Fred Hutchinson Cancer Research Center Fred Hutchinson Cancer Research Center Johns Hopkins University Louisiana State University Lovelace Respiratory Research Institute Lovelace Respiratory Research Institute National Jewish Medical and Research Center Pennsylvania State University Temple University University of Pennsylvania University of Pennsylvania University of Pennsylvania University of Pennsylvania University of Washington University of Washington Vanderbilt University Vanderbilt University Washington University in St. Louis Accel Diagnostics, LLC Carnegie Mellon University Duke University Medical College of Wisconsin Medical College of Wisconsin New England Research Institute New England Research Institute University of Miami University of Utah University of Utah Virginia Commonwealth University Virginia Commonwealth University Wake Forest University Allegheny Singer Research Institute Boston University Boston University CFDA Number 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.837 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.838 93.839 93.839 93.839 93.839 93.839 93.839 93.839 93.839 93.839 93.839 93.839 93.839 93.839 93.846 93.846 93.846 42 Agency or Pass-Through # 5U01 HL086622-03 U01 HL096607 R01 HL107241 5R01 HL080295-06 5R01 HL080295-07 5R01 HL080295-08 5U01 HL077863-08 5U01 HL077863-09 5U01 HL101066-03 7R01 HL086418-04 2R01 HL071241-08 1R01 HL105470-01A1 R01 HL105470 1R01 HL109823-01A1 5R01 HL088019-05 5U01 HL102547-02 5U01 HL102547-03 5R01 HL090483-05 2P01 HL076100-07A1 1R01 CA164782-01 5R01 CA164782-02 5U01 HL089897 5U01 HL109086-02 2R01 HL070301-09 5R01 HL081619-04 5R01 HL087115-05 5U01 HL086622-04 5U01 HL086622-05 5R01 HL106800-02 5R01 HL106800-03 5R01 HL085317-07 R01 HL085317 5R01 HL091762-04 1R43 HL110508-01A1 5R01 HL089456-05 5R01 HL101382-04 2P01 HL081588-06 5R01 HL103427-02 5U01 HL072268-09 5U01 HL072268-10 5R01 HL091749-04 1R01 HL085707-03 5R01 HL085707-04 P01 HL107152 5P01 HL107152-02 5R37 HL058091-17 7R01 AR046588-09 1P30 AR061271-01 5P30 AR061271-02 Federal Expenditures (12) 4,820 4,259 (1,709) 164,597 50,171 185,337 212,085 79,552 144,673 (521) 79,859 81,398 137,444 4,887 28,990 389 54,291 669,763 (8,185) 76,146 109,441 33,528 141,098 40,279 18,155 109,374 11,369 29,705 11,740 2,395 6,228 4,492 36,071 152,347 19,322 29,996 4,354 21,954 76,060 (17,797) (1,535) 136,310 165,276 343,800 41,748 122,788 10,437 79,567 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title CellStock LLC Children's Research Institute Children's Research Institute Cincinnati Children's Hospital Medical Center Duke University Duke University Duke University Harvard Medical School Northwestern University Swedish Health Services Tufts Medical Center University of Alabama University of Alabama University of California at Los Angeles University of Iowa University of Iowa University of Iowa University of Minnesota University of Nottingham University of Pennsylvania University of Pennsylvania University of Pennsylvania University of Washington Washington University in St. Louis Carnegie Mellon University Carnegie Mellon University Carnegie Mellon University Case Western Reserve University Case Western Reserve University Children's Hospital of Boston Children's Hospital of Philadelphia Children's Hospital of Philadelphia Children's Hospital of Philadelphia Children's Hospital of Philadelphia Cincinnati Children's Hospital Medical Center Cincinnati Children's Hospital Medical Center Cincinnati Children's Hospital Medical Center Cincinnati Children's Hospital Medical Center Connecticut Children's Medical Center George Washington University George Washington University Georgia Health Sciences University Isogenesis, Inc. Johns Hopkins University Johns Hopkins University Magee-Women's Research Institute & Foundation Mayo Clinic Rochester Mayo Clinic Rochester Mayo Clinic Rochester CFDA Number 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.846 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 43 Agency or Pass-Through # 1R41 AR057629-01A2 1P50 AR060836-01 5P50 AR060836-02 5P60 AR047784-09 3U01 AR052186-09S1 5U01 AR052186-08 5U01 AR052186-09 5R01 AG041398-20 P60 AR048098 7R01 AR060809-03 1R01 AR054938-01 5P60 AR048095-09 5P60 AR048095-10 1R21 AR060382-01A1 2R01 AR052113-06 5R01 AR052113-05 7R01 AR056959-05 5R01 AR055267-04 5R01 AR054342-05 1R01 AR064153-01 5U54 AR057319-10 7R01 AR054474-02 2R01 AR049832-07 1R01 AR062947-01A1 1R01 DK095780-01 2R01 DK060586-11 R01 DK095780 2U01 DK094157-02 DK094157 5R01 DK087794-03 5R01 DK078045-05 5R01 DK078045-06 5U01 DK074064-08 U01 DK074064-07 2UM1 DK072493-06 5R01 DK080020-04 5U01 DK072493-05 5UM1 DK072493-07 1U01 DK095745-01 1U01 DK096037-01 5U01 DK061230-11 5R18 DK082401-05 2R44 DK080538 5U01 DK074082-07 5U01 DK074082-08 5R01 DK078206-05 5R01 DK079856-02 5R01 DK079856-03 5R01 DK084960-02 Federal Expenditures (191) 25,271 59,690 1,521 101,809 276 7,878 76,508 2,927 13,697 (1) (136) 16,761 137,068 76 (2,667) 6,973 2,524 83,272 10,109 6,081 4,814 27,309 30,072 9,111 111,682 14,063 105,040 4,798 62,235 140,878 15,104 206 3,409 80,322 27,086 (3,222) 30,230 1,944 66,738 414,515 12,319 (38,678) 2,084 1,658 182,183 21,824 125,202 9,304 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Medical College of Wisconsin Mount Sinai Medical Center Mount Sinai Medical Center Mount Sinai School of Medicine Mount Sinai School of Medicine Mount Sinai School of Medicine Mount Sinai School of Medicine Mount Sinai School of Medicine Neuropsychiatric Research Institute Neuropsychiatric Research Institute Oklahoma University Health Science Center Pennsylvania State University Research Foundation – State University of New York Research Foundation – State University of New York Research Institute at Nationwide Children's Hospital Stanford University University of Colorado University of Iowa University of Maryland University of Maryland University of Michigan University of Minnesota University of Minnesota University of North Carolina University of Texas at San Antonio University of Utah Wake Forest University Wake Forest University Wayne State University Wayne State University Pennington Biomedical Research Center St. Luke's Roosevelt Institute for Health Sciences University of California University of Pennsylvania University of Pennsylvania University of Pennsylvania Duke University Cincinnati Children's Hospital Medical Center Cincinnati Children's Hospital Medical Center Emory University Emory University Emory University Gladstone Institutes Johns Hopkins University Johns Hopkins University Johns Hopkins University Johns Hopkins University Louisiana State University Louisiana State University CFDA Number 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.847 93.848 93.848 93.848 93.848 93.848 93.848 93.849 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 44 Agency or Pass-Through # 5R21 DK088018-02 5R01 DK080740-04 7R01 DK080740-02 5R01 DK038470-25 5R01 DK055023-12 5R01 DK065149-09 5U01 DK089538 7R01 DK077096-06 5R01 DK084979-02 5R01 DK084979-03 5R01 DK082766-03 1R01 DK094930-01A1 5U01 DK074063-07 5U01 DK074063-08 5R01 DK085242-04 1R01 DK092241-01A1 5U01 DK094467-02 1R21 DK096327-01 5R21 DK084566-02 P20 DK09085 5R01 DK053456-11 5R01 DK080720-03 5R01 DK080720-05 5U01 DK092239-02 5R34 DK084203-02 R01 DK091437 3R01 DK092237-02S2 5R01 DK092237-02 5U01 DK074062-08 U01 DK074062 R01 DK060412 2R01 DK072507-05 5P50 DK064539 5R01 DK072452-05 5R01 DK072452-07 5R01 DK080738-05 R01 DK077159-05 5U01 NS045911-07 5U01 NS045911-08 1R01 NS071867 1R01 NS071867-01A1 2U01 NS038455-11A1 3R01 NS057715-05S1 5R01 NS046309-06 5R01 NS057338-05 5U01 NS062851-03 5U01 NS062851-04 1R01 NS081303-01A1 5R01 NS06097 Federal Expenditures 11,617 64,326 8,491 127,816 33,557 38,354 120,907 7,556 16,617 47,639 12,098 14,374 (100) 2,842 33,550 13,787 223,274 125 (165) 5,820 31,149 54,847 33,504 1,131 1,428 22,594 8,565 166,433 682 3,314 29,842 87,824 87,892 (3,700) 60,162 15,999 (16,506) 14,586 14,206 8,151 (1,574) 13,962 102,202 53,963 6,285 22,934 27,507 6,807 42,418 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Massachusetts General Hospital Massachusetts General Hospital Massachusetts General Hospital Massachusetts General Hospital Medical University of South Carolina St. Joseph's Hospital and Medical Center St. Joseph's Hospital and Medical Center Stanford University Stanford University Synzyme Technologies Synzyme Technologies University of California University of California at San Francisco University of California at San Francisco University of California at Santa Barbara University of California at Santa Barbara University of Cincinnati University of Cincinnati University of Cincinnati University of Cincinnati University of Colorado University of Colorado University of Michigan University of Michigan University of Texas at Dallas University of Texas Southwestern Medical Center University of Utah University of Washington University of Washington Yale University Yale University Albert Einstein College Brigham & Women's Hospital Brigham & Women's Hospital Brigham & Women's Hospital Carnegie Mellon University Children's Hospital of Boston Duke University Emory University Emory University Fred Hutchinson Cancer Research Center Fred Hutchinson Cancer Research Center Geneva Foundation Gladstone Institutes Health Research, Incorporated Immunotope, Inc. ImQuest BioSciences, Inc. ImQuest BioSciences, Inc. ImQuest BioSciences, Inc. 45 CFDA Number Agency or Pass-Through # 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.853 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 3U01 NS066912-01A1S2 5P01 NS058793-05 5U01 NS066912-02 U01 NS052592-05 5U01 NS058728-04 5U01 NS052478-06 U01 NS052478 5R01 NS07529-02 5R01 NS07529-03 1U44 NS070324-01A1 5U44 NS070324-02 2P50 NS044378-06 5U01 NS053998-05 5U01 NS058634-04 5P01 NS044393-09 P01 NS044393 5P50 NS0444283-09 5P50 NS0444283-10 5U01 NS052220-04 5U01 NS052220-06 1R01 NS074343-01A1 5R01 NS074343-02 5U01 NS062778-04 5U01 NS069498-02 7R01 NS062065 5R01 NS061860-03 1R01 NS078331-01A1 5R01 NS072308-02 5R01 NS072308-03 2U01 NS044876-07 5U01 NS044876-09 1R01 AI094745-01A1 1P01 AI073748-01A1 5P01 AI073748-04 7UM1 AI068636-07 R01 AI066367 R01 AI070820-05 5U19 AI056363-09 5U19 AI051731-09 5U19 AI051731-10 5UM1 AI068618-06 5UM1 AI068618-07 1U01 AI082051-01 5P01 AI083050-04 1R01 AI097191-01A1 2R44 AI062177-03 1U19 AI101961-01 4R33 AI088586-03 5U19 AI077289-04 Federal Expenditures 23,741 162,035 (11,314) 2,531 8,162 58,896 (3,176) 1,323 20,073 (50,447) 209,400 (139) 218 33,524 397,951 51,362 29 13,901 (640) 63,615 104,086 167,918 11,953 9,906 42,835 58,685 29,796 3,521 20,272 777 7,892 51,591 110,417 65,513 1,337,398 (48) (8,164) 130,347 (5,113) 30,413 (2,634) 13,363 (3,686) 28,711 63,037 79,547 3,086 39,560 46,628 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Institute for Clinical Research Inc. Johns Hopkins University Johns Hopkins University Johns Hopkins University Loma Linda University Louisiana State University Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Massachusetts General Hospital Montefiore Medical Center Oregon Health & Science University Oregon Health & Science University Pennsylvania State University Research Foundation – State University of New York Scripps Research Institute Seattle Children's Hospital Social & Scientific Systems, Inc. Social & Scientific Systems, Inc. Social & Scientific Systems, Inc. Universal Stabilization Technologies University of California University of California at San Francisco University of California at San Francisco University of California Davis University of Central Florida University of Maryland University of Maryland University of Missouri University of Missouri University of North Carolina University of North Carolina University of Pennsylvania University of Pennsylvania University of South Florida University of Texas Medical Branch at Galveston University of Washington Vanderbilt University CFDA Number 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 93.855 46 Agency or Pass-Through # 1U01 AI068641 1R01 AI093520-01A1 5U01 AI090727-03 7U01 AI090727-02 5R01 AI090659-03 1R01 AI090059-01 5R01 AI102835-02 5U01 AI066734-06 5U01 AI068633-06 5U01 AI068633-07 5U19 AI082639-03 5U19 AI082637 5U19 AI082637-03 5U19 AI082637-04 5U19 AI082639-03 5U19 AI082639-04 5UM1 AI068633-07 U01 AI068633-06 U01 AI068633-07 U19 1AI082639 5U01 AI087881-02 5U01 AI35004-19 5U54 AI081680-04 U54 AI081860-05 5R01 AI093804-02 1R56 AI095268-01 1P50 GM103368-01 5R21 AI099930-02 1U01 AI068636-06 5U01 AI068636 UM1 AI068636-06 5R21 A1094508-02 5R01 AI092531-02 1U01 AI100807-01 5U01 AI052748-08 5R01 AI080799-04 5R33 AI082693-04 5U54 AI057168-10 U54 AI057168 1R01 AI100890-01A1 1R01 AO76119-01A2 5U54 AI057157-10 5U54 AI057157-11 5P01 AI088564-04 7P01 AI088564-03 1R01 AI072465-01A1 5R01 AI021242-27 5U01 AI074509-07 1U01 AI104336-01 Federal Expenditures 6,085 103,781 16,035 (4,677) 9,821 908 132,689 (1,334) (15,296) 1,129,515 174,135 82,854 26,313 165,036 56,270 105,320 84,794 (13,980) 1,034,617 153,062 32,094 (1,399) 348,134 123,678 81,133 29,773 103,217 14,521 6,224 (19,078) (11,326) 12,089 162,322 96,670 36,316 379,040 57,366 18,975 264,515 125,166 93,113 24,435 11,529 1,286,354 90,783 (934) 31,109 30,083 71,850 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Vanderbilt University Vanderbilt University West Liberty University Carnegie Mellon University Carnegie Mellon University Kensey Nash Corp. Magee-Women's Research Institute & Foundation Massachusetts Institute of Technology Medical College of Wisconsin Research Foundation – State University of New York St. Jude Children's Research Hospital St. Jude Children's Research Hospital Trevigen, Inc. Trevigen, Inc. University of Arkansas University of Arkansas University of Chicago University of Kansas University of Massachusetts University of Michigan University of North Carolina University of Pennsylvania Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Accessible Designs Inc Accessible Designs Inc Ann & Robert H. Lurie Children's Hospital of Chicago BioChem Genetics, LLC Carnegie Mellon University Cincinnati Children's Hospital Medical Center Columbia University Emory University Emory University George Washington University Koester Performance Research Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation CFDA Number 93.855 93.855 93.855 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.859 93.864 93.864 93.864 93.864 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 47 Agency or Pass-Through # 5R01 AI089401-04 7U01 AI077867-06 1K22 AI087703-01A1 1R01 GM087694-03 5R01 GM085022-03 1R43 GM096527-01 1R01 GM104007-01 1R01 GM081336-01A1 5R01 GM018344-03 5R01 GM063265-12 1R01 GM086415-02 1R01 GM086415-03 1R43 GM099213-01 5R44 GM087798-03 3R01 GM083144-04S1 5R01 GM083144-05 1U54 GM087519-01A1 5U01 GM094627-03 5P01 GM066524-10 5R01 GM099143-03 5R01 GM088199-05 5P01 GM055876-13 1K12 HD063087-03 5K12 HD043441-10 5K12 HD063087-03 5K12 HD063087-04 2R44 HD056705-02A1 2R44 HD060335-02 5R01 HD060997-03 HHSN275201000018C 5R01 HD071686-02 5K12 HD000850-27 5R01 HD057036-05 2R01 HD038979-11 2R01 HD038979-12 5U01 HD068541-02 1R43 HD068026-01A1 1P01 HD069316 1P01 HD069316-01A1 1P01 HD069316-02 1R01 HD075665-01 1R21 HD071707-02 1T15 HD072833-01 1T32 HD071859-01 1U01 HD069006-01 2K12 HD043441-11 3U10 HD063041-03S1 5K08 HD058073-05 5P01 HD030367-17 Federal Expenditures 336,633 103,570 6,780 (5,737) (12,999) 3,758 39,995 21,796 (36) 16,000 93 11,918 75,043 380,105 2 12,544 28,878 69,395 3,572 62,828 22,233 (10,147) 7,476 205,395 45,849 223,743 58,280 8,643 26,523 51,846 195,183 1,297 13,393 10,985 122,359 51,192 11,858 157,416 341,559 63,732 379,848 120,925 34,403 39,307 (1,182) 17,748 29,525 97,177 (90) UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Medical College of Wisconsin Medical College of Wisconsin Michigan Public Health Institute Oklahoma State University Oregon Health & Science University Oregon Health & Science University Oregon Health & Science University Pennsylvania State University Rhode Island Hospital Rhode Island Hospital ROTA Mobility, Inc. Temple University Three Rivers Holdings, LLC University of California at San Francisco University of California at San Francisco University of California San Diego University of Chicago University of Iowa University of Rochester University of Texas Medical Branch at Galveston University of Utah University of Utah University of Utah University of Utah University of Wisconsin Washington University in St. Louis Washington University in St. Louis Wayne State University Advanced Medical Electronics Corporation CFDA Number 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.865 93.866 48 Agency or Pass-Through # 5P01 HD030367-18 5P01 HD069316-02 5R01 HD059533 5R01 HD059533-03 5R01 HD059533-04 5R01 HD065893-03 5R01 HD068578-03 5R01 HD070647-02 5R21 HD067471-02 5R21 HD068809-02 5T32 HD071859-02 5U10 HD021410-28 5U10 HD021410-29 5U10 HD047905-08 5U10 HD047905-09 5U10 HD063041-03 5U10 HD069006-02 R01 HD055475 R01 HD061811 U10 HD063036 5R01 HD062347-03 5R01 HD062347-04 5R01 HD069039-02 1R15 HD072463-01 5R01 HD062864-02 5U54 HD061939-03 5U54 HD061939-04 5U54 HD034449-16 1R01 HD072693-01 5R01 HD072693-02 1R43 HD070519-01A1 5R01 HD038856-09 5R44 HD058376-03 5K12 HD000849-25 K12 HD000849 5R24 HD050837-08 5R21 HD058269-02 5R01 HD057192-02 1R01 HD057977-01A1 5R24 HD065702-03 5R01 HD069045-02 5U01 HD049934-07 5U01 HD049934-08 5U01 HD049934-09 1R21 HD068783-01A1 2K12 HD055931-06 5K12 HD055931-05 5R01 HD062477-03 1R43 AG041667-01 Federal Expenditures 478,754 24,130 (7,478) 52,166 138,401 200,428 243,153 206,670 105,291 1,002 7,464 12,591 4,190 200,405 187,411 33,559 142,306 370,131 162,534 13,144 20,957 2,915 35,877 22,212 89,535 36,097 17,120 5,249 230,909 75,309 637 3,976 109,426 100,716 10,158 14,978 21,760 14 16,000 18,185 10,067 39,093 25,869 85,816 4,006 100,134 22,588 21,456 40,095 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Albert Einstein College Albert Einstein College Boston University California Pacific Med Center Research Institute Carnegie Mellon University Carnegie Mellon University Columbia University Duke University Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation Massachusetts General Hospital Mayo Clinic Rochester Minneapolis Medical Research Foundation Minneapolis Medical Research Foundation Northern Cal Institute for Research and Education Northern Cal Institute for Research and Education Northern Cal Institute for Research and Education Rush University Medical Center Rush University Medical Center Tufts Medical Center Tufts Medical Center University of Delaware University of Florida University of Florida University of Maryland University of Pennsylvania University of Pennsylvania University of Pennsylvania University of Pennsylvania University of Washington University of Washington Wake Forest University Massachusetts Institute of Technology Oregon Health & Science University Oregon Health & Science University Physical Sciences Inc. University of California at Los Angeles University of Pennsylvania Advanced Medical Electronics Corporation University of California San Diego University of Pennsylvania CFDA Number 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.866 93.867 93.867 93.867 93.867 93.867 93.867 93.879 93.879 93.899 49 Agency or Pass-Through # 5P01 AG003949-27 5R01 AG031890-03 2R01 AG018037-12 2R01 AG026720-06A1 1R01 AG032370-01 5R01 AG032370-02 1R01 AG041797-01 5U01 AG022132-10 1R25 AG043365-01 7K01 AG031296-03 5R01 AG026240-05 5R01 AG013925-14 5U01 AG029824-02 U01 AG029824 5R01 AG034853-03 5U01 AG024904-07 5U01 AG024904-08 2P01 AG014449-14 2P01 AG014449-15 5R01 AG027002-06 5R01 AG027002-07 1R01 AG041202-01 4U01 AG022376-07 5U01 AG022376-08 1R01 AG029315-01 1R01 AG037679-01 5U01 AG030644-03 5U01 AG030644-04 U01 AG030644 5U01 AG016976-13 5U01 AG016976-14 5R01 AG033087-04 R01 EY011289 5R01 EY013516-09 R01 EY013516-10 5R44 EY018986-03 5R01 EY009859-17 5R01 EY014943-09 1R43 LM011646-01 5R01 LM010964-02 5P50 CA143187-03 Federal Expenditures 12,278 13,597 34,011 13,300 28,220 3,135 35,160 12,607 56,761 59,424 8,890 9,783 17,492 32,093 8,418 (16,143) 58,198 46,241 256,160 17,259 7,566 12,194 189,852 1,043,102 22,883 43,817 (9,864) 593,334 46,907 2,299 61,215 36,528 57,229 53,381 173,564 226,151 190,001 47,875 9,200 224,864 19,531 49,815,150 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Health Resources and Services Administration: Direct: Maternal & Child Health Federal Consolidated Programs Emergency Medical Services for Children Grants to Increase Organ Donations AIDS Education and Training Centers National Research Service Award in Primary Care Medicine Consolidated Health Centers (Community, Migrant, Homeless, Public Housing, and School) Advanced Nursing Education Grant Program Public Health Training Centers Program Geriatric Academic Career Awards Advanced Education Nursing Traineeships Nurse Education, Practice and Retention Grants Affordable Care Act (ACA) Public Health Training Centers, Resource Development and Academic Support to the Public Health Training Centers Program and Public Health Infrastructure Systems and Support Grants for Primary Care Training and Enhancement Special Projects of National Significance PPHF-2012 Geriatric Education Centers Pass-through: Isogenesis, Inc. Epilepsy Foundation Genetic Alliance Inc Massachusetts General Hospital Massachusetts General Hospital Brigham & Women's Hospital Carnegie Mellon University CFDA Number 50 Federal Expenditures 93.110 93.127 93.134 93.145 93.186 768,116 781,435 924,311 3,952,599 228,989 93.224 93.247 93.249 93.250 93.358 93.359 531,024 254,980 279,237 151,414 320,785 643,131 93.516 93.884 93.928 93.969 413,522 201,278 184,104 405,491 10,040,416 93.000 93.110 93.110 93.110 93.110 93.127 93.297 Centers for Disease Control and Prevention: Direct: Innovations in Applied Public Health Research Centers for Research and Demonstration for Health Promotion and Disease Prevention Injury Prevention and Control Research and State and Community Based Programs Immunization Research, Demonstration, Public Information and Education Training and Clinical Skills Improvement Projects Occupational Safety and Health Program Centers for Disease Control and Prevention – Investigations and Technical Assistance Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative Programs Other Centers for Disease Control and Prevention Agency or Pass-Through # 2R44 DK080538 H98MC2026B U36 MC16509 5UA3 MC11054-03 6UA3 MC11054-04 5H34 MC19346-0200 5TP1 AH000040-02 (31,379) 45,827 13,691 (242) 3,820 845 8,907 41,469 93.061 692,339 93.135 972,318 93.136 486,393 93.185 93.262 1,601,067 2,121,700 93.283 970,355 93.946 93.000 422,255 502,906 7,769,333 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Pass-through: University of Alabama County of Sacramento Pennsylvania State University Society of Teachers of Family Medicine Association of State and Territorial Health Officials Association for Prevention Teaching and Research Association for Prevention Teaching and Research Association of American Medical Colleges Johns Hopkins University Johns Hopkins University Johns Hopkins University Pennsylvania State University CFDA Number 93.000 93.069 93.136 93.185 93.283 93.283 93.283 93.283 93.283 93.283 93.283 93.283 Agency for Healthcare Research and Quality: Direct: National Research Service Awards – Health Services Research Training Research on Healthcare Costs, Quality and Outcomes Agency or Pass-Through # N01AI40073 75-0943-0-1-550 PHEP 5U49 CE001274-05 U66 IP000398 5U38 HM000454-04 3U50 CD300860 5U50 CD300860 5U36 CD319276 1U50 CK000203-01 5U01 CI000310 5U50 CK000203-02 1U01 CK000178-01 93.225 93.226 Pass-through: University of Wisconsin Vanderbilt University Veterans Research Foundation of Pittsburgh 93.226 93.226 93.226 Substance Abuse and Mental Health Services Administration: Direct: Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 Food and Drug Administration: Direct: Food and Drug Administration – Research 5R01 HS018368-04 5R18 HS020415-03 1R01 HS021290-01A1 93.103 93.103 93.103 51 35,379 7,964 9,396 52,739 268,449 268,449 5U79 SM054319-11 93.103 Pass-through: Boston University Oregon Health & Science University University of Tennessee 20,068 3,562 5,191 11,482 33,162 4,399 68,203 11,752 5,326 73,776 68,360 (500) 304,781 244,769 2,582,341 2,827,110 93.243 Pass-through: Allegheny Singer Research Institute Federal Expenditures 14,680 14,680 48,189 48,189 5R01 FD003516-02 5R01 FD003895-02 5R01 FD003709-03 (1,793) 172,024 10 170,241 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title DHHS Other: Direct: Family Planning Service Delivery Improvement Research Grants Pass-through: Southwest Research Institute Carnegie Mellon University Carnegie Mellon University Carnegie Mellon University CFDA Number Agency or Pass-Through # 93.974 93.000 93.297 93.297 93.297 127,003 127,003 HHSO100201100038C 5TP1 AH000040-01 6TP1 AH000040-03 6TP1 AH000040-04 Total Department of Health and Human Services Department of Defense: Department of the Army: Direct: Military Medical Research and Development Basic Scientific Research Basic, Applied, and Advanced Research in Science and Engineering Other Department of the Army 12.420 12.431 12.630 12.000 Pass-through: Carnegie Mellon University Carnegie Mellon University Cognition and Neuroergonomics Collaborative Neuren Pharmaceuticals, Ltd Pittsburgh Tissue Engineering Initiative Pittsburgh Tissue Engineering Initiative Pittsburgh Tissue Engineering Initiative TDA Research, Inc. United First Responders LLC Allegheny Singer Research Institute Braun Enterprises, Inc. Carnegie Mellon University Computational Diagnostics, Inc. Florida State University Geneva Foundation Geneva Foundation Greenville Hospital System Henry M. Jackson Foundation Indiana University Kennesaw State University Lipella Pharmaceuticals, Inc. Magee-Women's Research Institute & Foundation Medical University of South Carolina Neuren Pharmaceuticals, Ltd Northwestern University 12.000 12.000 12.000 12.000 12.000 12.000 12.000 12.000 12.000 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 52 Federal Expenditures 42,281 46,800 24,226 279,965 393,272 $ 500,936,874 $ 15,316,938 304,494 68,682 1,332,268 17,022,382 W911NF-08-1-0301 W911NF-10-2-0016 W911NF-10-2-0022 W81XWH-08-2-0014 W81XWH-07-1-0415 W81XWH-10-1-0618 W81XWH-11-2-0215 W31P4Q-11-C-0134 W81XWH-11-1-0723 W81XWH-08-1-0275 W81XWH-11-C-0537 W81XWH-12-2-0004 W81XWH-05-C-0047 W81XWH-10-2-0024 W81XWH-09-2-0187 W81XWH-13-2-0031 W81XWH-08-1-0473 W81XWH-11-2-0131 W81XWH-11-1-0403 W81XWH-11-2-0081 W81XWH-12-1-0565 W81XWH-10-1-0542 W81XWH-11-2-0229 W81XWH-09-1-0496 W81XWH-10-0536 (13,593) (1,971) 110,053 41,254 36,006 153,756 70,750 129,171 88,069 97,724 33,260 101,971 922 49,686 184,707 39,742 459 654,356 17,246 36,624 138,658 130,201 18,939 (899) 181,318 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title CFDA Number Pittsburgh Tissue Engineering Initiative Pittsburgh Tissue Engineering Initiative Pittsburgh Tissue Engineering Initiative St. Thomas University St. Thomas University Tissue Genesis Institute, LLC University of Cincinnati University of Cincinnati University of Maryland University of Miami Wake Forest University Wicab, Inc. Carnegie Mellon University Princeton University Rice University Rice University University of California Davis University of Connecticut University of Connecticut Health Center University of Iowa 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.420 12.431 12.431 12.431 12.431 12.431 12.431 12.431 12.431 Department of the Air Force: Direct: Basic and Applied Scientific Research Air Force Defense Research Sciences Program 12.300 12.800 Pass-through: Celgene Corporation Dynetics Inc Carnegie Mellon University Northwestern University Sungkyunkwan University University of Pittsburgh Medical Center University of Pittsburgh Medical Center University of Pittsburgh Medical Center University of Texas at Dallas University of Virginia 12.000 12.000 12.800 12.800 12.800 12.800 12.800 12.800 12.800 12.800 Department of the Navy: Direct: Basic and Applied Scientific Research Other Department of the Navy 12.300 12.000 53 Agency or Pass-Through # W81XWH-07-1-0415 W81XWH-10-1-0618 W81XWH-11-2-0215 W81XWH-10-1-0617 W81XWH-11-1-0645 W81XWH-11-2-0143 W81XWH-08-2-0016 W81XWH-08-2-0159 W81XWH-08-2-0159 W81XWH-10-2-0109 W81XWH-08-2-0032 W91ZSQ-01-9-1N616 W911NF-09-1-0273 W911NF-13-1-0034 W911NF-07-1-0464 W911NF-13-1-0018 W911NF-07-1-0318 W911NF-09-1-0286 W911NF-09-1-0286 W911NF-08-1-0317 Federal Expenditures 88,327 398,930 1,285,741 (200) 260,056 73,623 59,344 4,110 62,944 54,364 5,955,548 180,160 27,031 60,436 55,463 66,733 89,139 (15,646) 275 204,653 11,209,440 675,946 3,272,408 3,948,354 FA9550-08-1-0392 FA8650-08-D-1303 FA9550-08-1-0356 FA9550-11-1-0275 FA4869-07-1-4071 FA7014-10-2-0004 FA8650-11-2-6239 FA8650-11-2-6240 FA2386-10-1-4066 FA9550-09-1-0611 103,866 125,713 240,214 163,392 9,808 42,728 97,681 54,599 135,428 234,063 1,207,492 6,295,346 1,151,291 7,446,637 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Pass-through: Carnegie Mellon University Carnegie Mellon University Johns Hopkins University Pennsylvania State University CFDA Number 12.300 12.300 12.300 12.300 Advanced Research Projects Agency: Direct: Research and Technology Development Agency or Pass-Through # N00014-09-1-0680 N66001-11-1-4025 N66001-10-C-4056 N00014-10-1-0915 12.910 Pass-through: Boeing Company Carnegie Mellon University Cornell University Georgia Institute of Technology Harvard University 12.000 12.910 12.910 12.910 12.910 Defense Threat Reduction Agency: Direct: Basic Scientific Research – Combating Weapons of Mass Destruction 12.351 National Security Agency: Direct: Mathematical Sciences Grants Program 12.901 DoD Other: Pass-through: Institute of International Education 12.357 Total Department of Defense 190,247 7,280 1,318,462 37,556 1,553,545 64,184 64,184 FA8750-12-C-0332 FA8750-10-2-0165 FA8750-13-2-0015 N66001-11-1-4014 HR0011-11-C-0093 12.351 Pass-through: University of Virginia Federal Expenditures 29,343 59,311 37,719 (18,506) 472,301 580,168 1,173,477 1,173,477 HDTRA1-09-1-0008 52,208 52,208 891 891 HQ 00340820024 233,517 233,517 44,492,295 Other Agencies: National Science Foundation: Direct: Engineering Grants Mathematical and Physical Sciences Geosciences Computer and Information Science and Engineering Biological Sciences Social, Behavioral, and Economic Sciences 47.041 47.049 47.050 47.070 47.074 47.075 54 4,768,825 5,224,086 739,259 3,620,848 3,093,927 875,875 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Education and Human Resources Office of International and Integrative Activities Office of Cyberinfrastructure CFDA Number Agency or Pass-Through # 47.076 47.079 47.080 Pass-through: Arizona State University Carnegie Mellon University Carnegie Mellon University Carnegie Mellon University Lakeshore Cryotronics Inc Shared Spectrum Company University of North Carolina Carnegie Mellon University Carnegie Mellon University Columbia University Johns Hopkins University Massachusetts Institute of Technology Pennsylvania State University Carnegie Mellon University Carnegie Mellon University University of Arizona University of Colorado Carnegie Mellon University Carnegie Mellon University Columbia University University of California San Diego Arizona State University Association of Science Technology Centers Carnegie Mellon University Carnegie Mellon University Duke University Franklin Institute Franklin Institute New York Hall for Science University of Notre Dame Vanderbilt University Vanderbilt University Carnegie Mellon University University of Minnesota 47.041 47.041 47.041 47.041 47.041 47.041 47.041 47.049 47.049 47.049 47.049 47.049 47.050 47.070 47.074 47.074 47.074 47.075 47.075 47.075 47.075 47.076 47.076 47.076 47.076 47.076 47.076 47.076 47.076 47.076 47.076 47.076 47.080 47.082 Department of Education: Direct: National Resource Centers Program for Foreign Language and Area Studies or Foreign Language and International Studies Program and Foreign Language and Area Studies Fellowship Program Fund for the Improvement of Postsecondary Education 55 Federal Expenditures 3,933,874 37,284 263,093 22,557,071 CBET-1246547 1038932 CMMI-1130616 EEC-0540865 IIP-0956816 IIP-1216186 EEC-0812348 DMS-1001191 DMS-1106956 PHY-1119200 PHY-0705682 DMR-0819762 OCE-1140159 IIS-0911032 IOS-1024811 IOS-0840932 DEB-1115068 OMA-0836012 SBE-0354420 SES-0951516 SBE-0542013 DUE-1242325 ESI-0638981 DGE-0549352 DRL-0833496 DRL-1031351 DUE-1239782 DUE-1043371 DRL-1010507 DUE-0735633 ESI-0554486 ESI-0554535 OCI-1053575 DMS-0908663 23,620 35,983 5,434 1,312,463 (28,050) 46,957 1,343,803 36,270 5,977 41,110 7,746 1 62,507 280,977 7,577 2,703 93,616 975,062 469 12,763 2,759 22,002 6,160 264,190 18,366 24,973 68,177 8,330 13,088 8,750 25,371 (12,120) 38,491 42,362 4,797,887 84.015 435,498 84.116 27,550 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Rehabilitation Long-Term Training National Institute on Disability and Rehabilitation Research Centers for International Business Education Education Research, Development and Dissemination Research in Special Education Special Education – Personnel Development to Improve Services and Results for Children with Disabilities Pass-through: Craig Hospital Florida State University University of Alabama University of California at San Francisco University of Illinois University of Michigan 21st Century Partnership for STEM Education Stanford University Allegheny Intermediate Unit Allegheny Intermediate Unit State of Tennessee CFDA Number Pass-through: Apogee Technology Inc Carnegie Mellon University Lawrence Livermore National Security, LLC Research and Development Solutions LLC Siemens UChicago Argonne, LLC University of California University of Texas at Austin URS Corporation UT-Battelle, LLC UT-Battelle, LLC Harvard Medical School Northwestern University University of Illinois Nye County Pennsylvania State University ABB Inc. 85,397 84.133 84.220 84.305 84.324 2,936,002 237,329 2,063,753 487,839 84.325 988,193 7,261,561 H133A110006 P116M100008 H133E110007 H133B080002 H133E070029 H133E060064 R305C080009 R305A110864 MSP RA075100603 Improving Teacher Quality 81.049 81.057 81.089 81.121 81.135 81.000 81.000 81.000 81.000 81.000 81.000 81.000 81.000 81.000 81.000 81.000 81.049 81.049 81.049 81.065 81.086 81.087 56 Federal Expenditures 84.129 84.000 84.116 84.133 84.133 84.133 84.133 84.305 84.305 84.366 84.366 84.367 Department of Energy: Direct: Office of Science Financial Assistance Program University Coal Research Fossil Energy Research and Development Nuclear Energy Research, Development and Demonstration Advanced Research Projects Agency – Energy Agency or Pass-Through # 522 37,861 12,599 5,996 924 1,938 187,808 18,781 77,604 114,088 411,018 869,139 3,613,751 57,115 228,361 266,949 114,453 4,280,629 DE-FG36-05GO15047 DE-NT0006550 DE-AC52-07NA27344 DE-AC26-04NT41817 DE-FC26-05NT42644 DE-AC02-06CH11357 DE-AC02-05CH11231 DE-AC26-07NT42677 DE-FE0004000 DE-AC05-00OR22725 DE-AC07-05ID14517 DE-SC0005247 DE-SC0005343 DE-FG02-03ER15476 10-013 DE-EE0004261 DE-EE0005365 (5,262) 22,493 79,992 1,625 (4,971) 18,873 432,424 25,438 3,038,694 29,564 140,116 90,111 90,530 165,603 16 113,755 2,287 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Bayer Material Science, LLC Citizens for Pennsylvania's Future Lehigh University Carnegie Mellon University CFDA Number 81.087 81.117 81.122 81.135 Department of the Interior: Direct: Other Department of the Interior 15.000 Pass-through: Commonwealth of Pennsylvania 15.250 Department of Justice: Direct: Other Department of Justice Agency or Pass-Through # DE-EE0004571 DE-EE0005683 DE-OE0000428 DE-AR0000219 16.000 N.A.S.A.: Direct: Aerospace Education Services Program: NNX12AQ25G NNX08AB36A NNX10AC80G NNX10AF68G NNX11AL29G NNX11AP17G Other N.A.S.A 43.001 43.001 43.001 43.001 43.001 43.001 43.000 Pass-through: Carnegie Museum of Pittsburgh Smithsonian Astrophysical Observatory Space Telescope Science Institute University of Arizona Arizona State University Arizona State University Carnegie Mellon University 43.000 43.000 43.000 43.000 43.001 43.001 43.001 National Endowment for the Humanities: Direct: Promotion of the Humanities – Fellowships and Stipends Promotion of the Humanities – Seminars and Institutes Promotion of the Humanities – Public Programs 45.160 45.163 45.164 57 70,610 20,142 77,588 31,462 4,441,090 2,024,522 2,024,522 S13AP20005 16.000 Pass-through: Public Health Institute Federal Expenditures 238,698 238,698 810,491 810,491 2011-MU-MU-00023 72,196 72,196 34,152 (2,034) 82,217 36,022 207,828 99,789 (278) 457,696 NNX10AAB48A NAS8-03060 NAS5-26555 NNG07EK00C NMO7-10630 NNX12AJ17G NNX10AC85G 40,275 32,884 100,913 24,649 69,745 5,248 28,930 302,644 18,017 133,075 27,796 178,888 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title CFDA Number Agency or Pass-Through # Federal Expenditures Institute of Museum and Library Services: Direct: National Leadership Grants 45.312 21,201 21,201 Department of Agriculture: Direct: Agricultural Research Basic and Applied Research Grants for Agricultural Research, Special Research Grants Grants for Agricultural Research Competitive Research Grants Forest Health Protection Other Department of Agriculture 10.001 10.200 10.206 10.680 10.000 6,987 41,947 35,706 8,269 6,738 99,647 Pass-through Arizona State University Iowa State University 10.310 10.310 2012-67009-19717 2011-85212-30122 33,579 30,597 64,176 Department of Commerce: Direct: Climate and Atmospheric Research Measurement and Engineering Research and Standards 11.431 11.609 94,597 66,596 161,193 Department of Transportation: Direct: Other Department of Transportation 20.000 64,885 64,885 Pass-through: Minnesota Department of Transportation National Academy of Sciences University of Cincinnati Commonwealth of Pennsylvania 20.000 20.200 20.200 20.205 Environmental Protection Agency: Direct: Science To Achieve Results (STAR) Research Program 92965 DTFH61-08-H-000035 DTFH61-08-H-000035 contruction&planning 66.509 Pass-through: Faraday Technology Inc. 66.000 58 131,296 113,758 7,092 134,256 386,402 381,584 381,584 EP-D-12-017 6,699 6,699 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Nuclear Regulatory Commission: Direct: U. S. Nuclear Regulatory Commission Nuclear Education Grant Program U.S. Nuclear Regulatory Commission Scholarship and Fellowship Program CFDA Number Federal Expenditures 77.006 233,242 77.008 358,881 592,123 Department of Housing and Urban Development: Pass-through: City of Pittsburgh Housing Authority of the City of Pittsburgh 14.401 14.881 Department of Homeland Security: Direct: Assistance to Firefighters Grant Other Department of Homeland Security 97.044 97.000 Pass-through: Duke University University of Maryland University of Kansas Agency or Pass-Through # FF203K113011 MTW Demonstration 51,660 29,345 81,005 101,292 164,835 266,127 97.000 97.000 97.044 HSHQDC-11-C00083 H98230-07-D-0175 EMW-2011-FP-01327 Agency for International Development: Pass-through: Mitchell Group, Inc. 98.000 GS-10F-0044N Department of Veterans Affairs: Direct: Other Department of Veterans Affairs 64.000 General Services Administration: Pass-through: High Performance Technologies, Inc. 39.000 56,633 (570) 3,859 59,922 212,010 212,010 5,183,926 5,183,926 GS04T09DBC0017 31,613 31,613 Total Other Agencies 55,905,025 TOTAL RESEARCH & DEVELOPMENT CLUSTER (excluding ARRA) 59 $ 601,334,194 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 CFDA Number Federal Grantor/Pass-Through Grantor/Program Title Agency or Pass-Through # Federal Expenditures I-A. RESEARCH & DEVELOPMENT CLUSTER (ARRA): Department of Health and Human Services: National Institutes of Health: Direct: Mental Health Research Grants Trans-NIH Recovery Act Research Support Other National Institutes of Health: Cancer Library of Medicine ARRA 93.242 ARRA 93.701 $ ARRA 93.000 ARRA 93.000 Pass-through: SAIC-Frederick, Inc. Social & Scientific Systems, Inc. University of Utah Albert Einstein College Boston Medical Center Carnegie Mellon University Children's Hospital of Philadelphia Cincinnati Children's Hospital Medical Center Duke University Ionwerks Inc. Mount Sinai Medical Center Mount Sinai School of Medicine National Jewish Medical and Research Center Northern Cal Institute for Research and Education Oregon Health & Science University Oregon Health & Science University Princeton University Psychology Software Tools, Inc. Research Institute at Nationwide Children's Hospital Robert Wood Johnson Medical School-UMDNJ Robert Wood Johnson Medical School-UMDNJ Stanford University University of Alabama University of California at Irvine University of California at Los Angeles University of California at San Francisco University of Colorado University of Colorado Cancer Center University of Florida University of Maryland University of Washington Wake Forest University ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA 60 93.000 93.000 93.000 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 93.701 91,889 6,587,459 344,732 15,115 7,039,195 HHSN261200800001E HHSN272200900001/2/3 HHSN268200900046C 1RC4 AI092760-01 1RC2 HL101212 1R01 CA134633-01A1 3U10 CA098543-10S1 3U01 DK072493-04S1 1RC2 AR058934 1RC3 DA031431-01 5R01 MH089025-02 3U01 AI063594-07S1 1RC2 HL101715-01 1RC2 AG036535 3U01 DK066555-06S1 3U01 DK066555-06S2 1RC1 NS068414-01 1RC3 AG037357-01 1RC4 DK090937-01 1RC2 HL101458-01 2RC2 HL101458-01 5R01 NS039325-05 1RC2 AR058964-02 1RC4 AI092327-01 3R01 EY009859 5RC2 NS069409-02 7RC2 HL101715-03 5RC2 CA148394-02 5U01 AG022376-02 1U01 AI077909-01 5RC1 HL100347-02 1RC2 HL101487-02 174,982 26,037 (6,858) 374,591 26,040 (759) 5,716 1,509 (305) 216,021 27,779 12,482 (668) 22,824 4,842 16,734 (31) 40,489 53,970 1,745 61,246 32,438 11,733 6,577 (19,666) 37,740 142,946 3,845 (15,902) (19,344) 1,028 40,184 1,279,965 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 CFDA Number Federal Grantor/Pass-Through Grantor/Program Title Agency or Pass-Through # Federal Expenditures Centers for Disease Control and Prevention: Direct: Prevention Research Centers Comparative Effectiveness Research Program ARRA 93.730 283,078 283,078 Agency for Healthcare Research and Quality: Direct: Recovery Act Comparative Effectiveness Research – AHRQ ARRA 93.715 818,873 818,873 Pass-through: Massachusetts General Hospital ARRA 93.715 1R01 HS019371-01 DHHS Other: Pass-through: University of California San Diego ARRA 93.728 90TR0002/01 265,770 265,770 49,914 49,914 Total Department of Health and Human Services 9,736,795 Other Agencies: National Science Foundation: Direct: Trans-NSF Recovery Act Research Support ARRA 47.082 Pass-through: Carnegie Mellon University Duke University ARRA 47.082 ARRA 47.082 1,311,203 1,311,203 CCF-0926181 SES-0922373 136,504 88,455 224,959 Department of Energy: Direct: Office of Science Financial Assistance Program ARRA 81.049 Geologic Sequestration Training and Research Grant Program ARRA 81.133 Pass-through: URS Corporation GE Global Research University of Massachusetts ARRA 81.000 ARRA 81.049 ARRA 81.049 130,981 47,699 178,680 DE-FE0004000 DE-AR0000084 DE-SC0001087 275,065 23,126 212,032 510,223 Total Other Agencies 2,225,065 TOTAL RESEARCH & DEVELOPMENT CLUSTER (ARRA) TOTAL RESEARCH & DEVELOPMENT CLUSTER 61 $ 11,961,860 $ 613,296,054 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title CFDA Number Agency or Pass-Through # Federal Expenditures II. STUDENT FINANCIAL ASSISTANCE CLUSTER: Department of Education: Direct: Federal Pell Grant Program Federal Work-Study Program Federal Supplemental Educational Opportunity Grants Teacher Education Assistance for College and Higher Education (TEACH) Grants Federal Perkins Loan Program – Federal Capital Contributions 84.063 84.033 84.007 Health Resources and Services Administration: Direct: Nursing Faculty Loan Program Health Professions Student Loan Program: Dentistry Pharmacy Nursing Student Loan Program: Baccalaureate $ 21,917,141 1,945,059 1,310,958 84.379 3,000 84.038 3,198,420 28,374,578 93.264 70,081 93.342 93.342 539,850 232,530 93.364 366,014 1,208,475 TOTAL STUDENT FINANCIAL ASSISTANCE CLUSTER $ 29,583,053 $ 530,222 25,562 555,784 $ 555,784 $ 3,810,484 3,810,484 $ 3,810,484 III. TRIO CLUSTER: Department of Education: Direct: TRIO – Student Support Services TRIO – Upward Bound 84.042 84.047 TOTAL TRIO CLUSTER IV. HEAD START CLUSTER (excluding ARRA): Administration for Children and Families: Direct: Head Start 93.600 TOTAL HEAD START CLUSTER (excluding ARRA) 62 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title CFDA Number Agency or Pass-Through # Federal Expenditures V. CHILDREN NUTRITION CLUSTER: Department of Agriculture: Pass-through: Commonwealth of Pennsylvania 10.559 SFSP TOTAL CHILDREN NUTRITION CLUSTER $ 3,301 3,301 $ 3,301 $ 1,948 28,610 80,520 302,899 280,224 15,000 VI. OTHER PROGRAMS (excluding ARRA): Department of Health and Human Services: National Institutes of Health: Direct: Environmental Health Research Related to Deafness and Communication Disorders Mental Health Research National Center for Research Resources Cardiovascular Diseases Research Diabetes, Digestive, and Kidney Diseases Extramural Research Extramural Research Programs in the Neurosciences and Neurological Disorders Child Health and Human Development Extramural Research Other National Institutes of Health: Cancer Library of Medicine Pass-through: Children's Hospital Medical Center National Academy of Sciences NSABP Foundation, Inc. SAIC-Frederick, Inc. University of California University of Utah American College of Radiology Baylor College of Medicine Brigham & Women's Hospital Children's Hospital of Philadelphia Children's Hospital of Philadelphia Children's Hospital of Philadelphia Children's Hospital of Philadelphia Children's Hospital of Philadelphia Children's Hospital of Philadelphia Frontier Science & Technology Research Foundation Frontier Science & Technology Research Foundation Frontier Science & Technology Research Foundation Frontier Science & Technology Research Foundation Gynecologic Oncology Group 93.113 93.173 93.242 93.389 93.837 93.847 93.853 93.865 40,527 24,326 93.000 93.000 14,773 1,356,453 2,145,280 93.000 93.000 93.000 93.000 93.000 93.000 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 93.395 63 HHSN275200900018C HHSP23337017T 5U10 CA069651-11 HHSN261200800001E HHSN261201100038C HHSN268200900046C 5U10 CA021661-37 5R01 CA132899-04 7U10 CA076001-16 2U10 CA095861-11 2UM1 CA097452-11 5U10 CA098543-11 7U10 CA098543-10 7U10 CA098543-11 U10 CA098543-10 U10 CA021115-37 U10 CA021115-38 U10 CA021115 5U10 CA21115-38 5U10 CA027469-29 58,047 2,581 166,087 (89) 116,908 402,784 152,068 (3,536) 963 6,079 68,553 52,320 183,996 13,108 6,400 11,225 1,651 331,961 351,012 51,113 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title National Childhood Cancer Foundation National Childhood Cancer Foundation St. Jude Children's Research Hospital St. Jude Children's Research Hospital Frontier Science & Technology Research Foundation Frontier Science & Technology Research Foundation NSABP Foundation, Inc. Pennsylvania State University Pennsylvania State University Pennsylvania State University University of Minnesota National Marrow Donor Program Washington University in St. Louis Columbia University Columbia University Massachusetts General Hospital St. Joseph's Hospital and Medical Center University of Medicine and Dentistry of New Jersey Magee-Women's Research Institute & Foundation University of California San Diego University of Washington University of Washington University of Washington CFDA Number 93.395 93.395 93.395 93.395 93.399 93.399 93.399 93.837 93.837 93.838 93.838 93.839 93.839 93.853 93.853 93.853 93.853 93.853 93.865 93.866 93.866 93.866 93.866 Health Resources and Services Administration: Direct: Maternal & Child Health Federal Consolidated Programs Nurse Anesthetist Traineeships Emergency Medical Services for Children Coordinated Services and Access to Research for Women, Infants, Children and Youth Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease Prevention and Public Health Fund (PPHF) Public Health Traineeships Pass-through: Health Research, Incorporated Primary Care Health Services, Inc. Pennsylvania State University Pennsylvania State University Health Research, Incorporated Health Research, Incorporated Massachusetts General Hospital Massachusetts General Hospital Massachusetts General Hospital National Marrow Donor Program 5U10 CA097452-10 5U10 CA098543-09 2U01 CA081457-13 5U01 CA081457-14 2U10 CA37403-27 2U10 CA37403-28 2U10 CA37377-27 5U01 HL098115-02 5U10 HL098115-04 5U01 HL109086-02 U10 HL074424-08 1U01 HL069294-01 5U01 HL088476 1U54 NS078059-01 5U54 NS078059-02 5U01 NS049640-06 5U01 NS052478-05 5R01 NS038384-09 5U10 HD057753-05 5U01 AG024904-08 5U01 AG032438-03 5U01 AG032438-04 5U01 AG032438-05 Federal Expenditures 18,582 (72) (39) 90,720 58,061 3,178 75,847 51,162 145,609 29,820 84,169 5,366 514 1,886 1,479 38,131 (18,894) 45,056 18,109 96,611 (1,318) 111,218 61,353 2,889,779 93.110 93.124 93.127 430,867 47,706 10,581 93.153 491,375 93.918 1,039,363 93.964 20,736 2,040,628 93.000 93.000 93.107 93.107 93.110 93.110 93.110 93.110 93.110 93.134 64 Agency or Pass-Through # U22 MC03956 1U1E MC19332-0100 1U77 HP06111-0700 2U77 HP06111-0800 1H46 MC24094-01 1H46 MC24094-0100 2UA3 MC011054-0400 6UA3 MC011054-05 6UA3 MC011054-0402 2310200-07 3,429 175,098 50,216 33,793 1,518 1,680 25,861 119,139 5,488 51,602 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title American International Health Alliance Community College of Allegheny County Commonwealth of Pennsylvania Jewish Healthcare Foundation Centers for Disease Control and Prevention: Direct: CFDA Number Agency or Pass-Through # 93.145 93.265 93.917 93.917 HF2MOZ06PPTURUPUM 2D62 HP15120-04 Ryan White CARE Act Ryan White CARE Act 93.000 Pass-through: Research for Mental Hygiene – Basic Research Catholic University of Mozambique Commonwealth of Pennsylvania Commonwealth of Pennsylvania Commonwealth of Pennsylvania Johns Hopkins University Commonwealth of Pennsylvania Commonwealth of Pennsylvania Commonwealth of Pennsylvania Commonwealth of Pennsylvania 93.000 93.067 93.283 93.283 93.283 93.283 93.524 93.940 93.940 93.940 Substance Abuse and Mental Health Services Administration: Direct: Substance Abuse and Mental Health Services Projects of Regional and National Significance 139,831 10,016 (12,986) 191,989 796,674 24,755 24,755 U19 DD00753 1U2G GH000481-01 1U50 DD000578-01 1U58 DP003937-01 5U58 DP000790-05 1U50 CK000203-01 8050501PPHF12 1U26 PS003643-01 5U62 PS003643-02 5U62 PS323509-07 93.243 1,876 9,795 25,066 64,686 52,210 27,173 96,489 300,375 180,408 845,447 1,603,525 123,587 123,587 Pass-through: Commonwealth of Pennsylvania Commonwealth of Pennsylvania Commonwealth of Pennsylvania Allegheny County Allegheny Singer Research Institute Mercy Behavioral Health Mercy Behavioral Health Pittsburgh AIDS Task Force Pittsburgh AIDS Task Force 93.104 93.104 93.104 93.243 93.243 93.243 93.243 93.243 93.243 1H79 SM060632-01 5U79 SM059056-03 5U79 SM059056-04 UD1 TI5977 1U79 SM061257-01 1H79 SM059154-01 5H79 SM059154-04 5U79 SP015018-04 5U79 SP015018-05 Centers for Medicare and Medicaid Services: Pass-through: Feinstein Institute for Medical Research Allegheny County 93.610 93.778 1C1 CMS331052-01 Medical Assistance Program Administration for Children and Families: Pass-through: Commonwealth of Pennsylvania Commonwealth of Pennsylvania 93.556 93.643 4100053866 4100053866 65 Federal Expenditures 226,261 455,907 971,235 46,427 62,763 9,809 24,196 6,651 20,751 1,824,000 107,845 16,374 124,219 1,488,584 24,147 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title CFDA Number Agency or Pass-Through # Commonwealth of Pennsylvania Commonwealth of Pennsylvania Commonwealth of Pennsylvania Commonwealth of Pennsylvania 93.658 93.658 93.669 93.674 4100056694 4100053866 4100053866 4100053866 DHHS Other: Pass-through: Social & Scientific Systems, Inc. 93.000 HHSN272200900001/2/3 Total Department of Health and Human Services Federal Expenditures 8,100,146 8,194,065 124,496 419,172 18,350,610 15,583 15,583 29,938,640 Department of Defense: Department of the Army: Direct: Basic Scientific Research 12.000 Pass-through: Body Media Inc Children's Research Institute MD Consulting, LLC. Precision Therapeutics Inc. American Burn Association Children's Hospital of Pittsburgh Henry M. Jackson Foundation National Trauma Institute National Trauma Institute Stanford University 41,416 41,416 12.000 12.000 12.000 12.000 12.420 12.420 12.420 12.420 12.420 12.420 W81XWH-06-1-0734 W81XWH-09-1-0592 W91YTZ-11-P-0929 W81XWH-06-2-0021 W81XWH-09-2-0194 W81XWH-04-1-0851 W81XWH-08-2-0700 W81XWH-10-1-0924 W81XWH-11-1-0841 W81XWH-10-2-0178 21,880 3,883 116,661 2,850 634 30,891 39,914 (1,150) 63,565 10,625 289,753 Department of the Air Force: Pass-through: University of Pittsburgh Medical Center University of Pittsburgh Medical Center 12.000 12.800 FA7014-08-2-0001 FA7014-10-2-0005 257,430 (58,247) 199,183 Department of the Navy: Pass-through: Georgetown University Georgetown University 12.300 12.300 N00014-11-1-0590 N00014-12-1-0240 66,923 687,301 754,224 Total Department of Defense 1,284,576 66 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Other Agencies: Department of Education: Direct: National Resource Centers Program for Foreign Language and Area Studies or Foreign Language and International Studies Program Graduate Assistance in Areas of National Need Pass-through: Pennsylvania Commission on Crime and Delinquency National Writing Project Corporation National Writing Project Corporation CFDA Number 84.015 84.200 84.186 84.367 84.928 Department of Energy: Direct: Office of Science Financial Assistance Program Agency or Pass-Through # 805,627 212,818 1,018,445 SDFSC 92-PA09-SEED2012 U928A050001 81.049 Pass-through: Leonardo Technologies, Inc. UT-Battelle, LLC Federal Expenditures (105) 16,426 11,861 28,182 15,673 15,673 81.000 81.049 DE-FE0004002 DE-AC05-00OR22725 30,000 29,944 59,944 N.A.S.A.: Pass-through: Pennsylvania State University 43.000 NNX10AK74H 24,198 24,198 Department of the Interior: Direct: Science and Technology Projects Related to Coal Mining and Reclamation 15.255 Pass-through: Commonwealth of Pennsylvania 15.255 Agency for International Development: Direct: Other Agency for International Development 29,433 29,433 ME 4000013645 98.000 Pass-through: Creative Associates International Democracy International, Inc. Magee-Women's Research Institute & Foundation Magee-Women's Research Institute & Foundation 98.000 98.000 98.000 98.000 67 39,334 39,334 31,183 31,183 AID-611-C-12-00003 306-A-00-9-00522-00 GPO-A-00-08-000005 GPO-A-00-08-000005-0 149,225 (4,131) 10,399 40,528 196,021 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title CFDA Number Agency or Pass-Through # Federal Expenditures Institute of Museum and Library Services: Direct: 21st Century Museum Professionals 45.307 172,171 172,171 Environmental Protection Agency: Direct: Science To Achieve Results (STAR) Fellowship Program 66.514 15,108 15,108 Department of Commerce: Direct: Research and Evaluation Program Coastal Zone Management Estuarine Research Reserves 11.312 11.420 113,226 218 113,444 Department of Agriculture: Direct: Agricultural Research Basic and Applied Research Agriculture and Food Research Initiative (AFRI) 10.001 10.310 3,902 29,070 32,972 Pass-through: Iowa State University Texas Woman's University Commonwealth of Pennsylvania 10.219 10.310 10.558 2008-33120-19543 2011-67005-30018 CACFP United States Institute of Peace: Pass-through: Institute of International Education 91.004 PeacebuildingSupport Department of Justice: Pass-through: Pennsylvania Commission on Crime and Delinquency Drexel University 16.609 16.738 PSN 2011-DJ-BX-2218 U.S. Department of State: Pass-through: American Council of Learned Societies 19.300 S-LMAQM-07-GR-229 Department of Treasury: Direct: Low-Income Taxpayer Clinics 21.008 68 9,261 3,848 21,611 34,720 1,750 1,750 183 49,075 49,258 9,572 9,572 82,799 82,799 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Small Business Administration: Direct: 7(j) Technical Assistance CFDA Number Agency or Pass-Through # Federal Expenditures 59.007 Pass-through: University of Pennsylvania University of Pennsylvania University of Pennsylvania 59.000 59.037 59.060 82,613 82,613 EARLY AWARD SBAHQ-12-B-0056 1-603001-Z-0146 70,227 262,206 16,055 348,488 Nuclear Regulatory Commission: Direct: U.S. Nuclear Regulatory Commission Scholarship and Fellowship Program 77.008 Corporation for National and Community Services: Pass-through: Jumpstart for Young Children Inc 94.006 Vietnam Fellowship Fund: Direct: U.S. Faculty Scholar Grants 85.801 27,000 27,000 Department of Veterans Affairs: Direct: Other Department of Veterans Affairs 64.000 316,698 316,698 Pass-through: United States Olympic Committee 64.034 34,000 34,000 090200 150,975 150,975 2012-PP-001 56,732 56,732 Total Other Agencies 2,970,713 TOTAL OTHER PROGRAMS (excluding ARRA) $ 34,193,929 $ 1,279,216 1,279,216 VI-A. OTHER PROGRAMS (ARRA): Department of Health and Human Services: National Institutes of Health: Direct: National Center for Research Resources, Recovery Act Construction Support ARRA 93.702 69 UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 Federal Grantor/Pass-Through Grantor/Program Title Pass-through: Social & Scientific Systems, Inc. University of California Davis University of Utah National Childhood Cancer Foundation University of California San Diego ARRA ARRA ARRA ARRA ARRA Centers for Disease Control and Prevention: Pass-through: Commonwealth of Pennsylvania CFDA Number Agency or Pass-Through # 93.000 93.000 93.000 93.701 93.701 HHSN272200900001/2/3 HHSN2612000622009C HHSN268200900046C 3U01 CA97452-07S2 1RC2 AG036535-01 ARRA 93.723 Federal Expenditures 2,011 23,843 (118,004) 3 (795) (92,942) 3U58 DP001987-01S2 19,231 19,231 Total Department of Health and Human Services 1,205,505 Other Agencies: Department of Commerce: Direct: National Institute of Standards and Technology Construction Grant Program ARRA 11.618 7,722,239 7,722,239 Total Other Agencies 7,722,239 TOTAL OTHER PROGRAMS (ARRA) $ 8,927,744 TOTAL OTHER PROGRAMS $ 43,121,673 GRAND TOTAL – FEDERAL AWARDS AND GRANTS $ 690,370,349 70 UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2013 (1) Basis of Presentation The purpose of the schedule of expenditures of federal awards (the Schedule) is to present detail of the activities of the University of Pittsburgh – Of the Commonwealth System of Higher Education (the University), which have been funded through the federal government for the year ended June 30, 2013. For the purposes of the Schedule, federal awards have been classified in two types: Direct federal awards, and Pass-through funds received from nonfederal organizations made under federally sponsored programs conducted by those organizations. Since the Schedule presents only a selected portion of the activities of the University, it is not intended to and does not present either the financial position, changes in net assets, or cash flows of the University. The Schedule is prepared on the accrual basis of accounting. Negative expenditures detailed in the Schedule result from current year adjustments to prior year award amounts. (2) Federal Loan Programs The University administers the following federal loan programs with an outstanding loan balance as of June 30, 2013: Federal grant and program title Department of Education – Federal Perkins Loan Program Department of Health and Human Services – Public Service: Health Professions Student Loan Program: Medicine Dentistry Pharmacy Nursing Student Loan Program – Baccalaureate Nursing Faculty Loan Program: Nursing Faculty Loan ARRA Nursing Faculty Loan Disadvantaged Student Loan Program: Medicine Dentistry (3) CFDA number 84.038 Outstanding loan balance $ 29,912,452 93.342 93.342 93.342 93.364 306,240 4,181,553 1,094,530 2,145,151 93.408 93.264 137,310 294,745 93.342 93.342 185,265 22,662 Department of Education Loan Programs The University processed $255,131,759 of new loans under the Department of Education – Federal Direct Student Loans Program (CFDA #84.268) for the year ended June 30, 2013. The University has elected to not include the program on the Schedule. 71 (Continued) UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2013 (4) Student Financial Assistance Program For the year ended June 30, 2013, administrative costs on the Student Financial Assistance Program were claimed under the Federal Supplemental Education Opportunity Grant Program and the Federal Work Study Program in the amounts of $50,589 and $222,007, respectively. (5) Reimbursement of Facilities and Administrative Costs Research grants and contracts normally provide for the recovery of direct and Facilities and Administrative costs (F&A costs). Recovery of the related F&A costs is generally recorded at predetermined rates negotiated with the federal government. Entitlement to these resources for the recovery of the applicable direct and related F&A costs is generally conditioned upon compliance with the terms and conditions of the grant agreements and applicable federal regulations, including the expenditure of the resources for eligible purposes. Substantially all grants and the University’s F&A cost rate are subject to financial and compliance reviews and audits by the grantors. In management’s opinion, the likelihood of an adverse material outcome upon the University’s financial position from those reviews and audits is remote. On April 13, 2012, the Department of Health and Human Services approved F&A cost recovery rates effective from July 1, 2011 through June 30, 2015. (6) Payments to Subrecipients Certain funds are passed through to subgrantee organizations by the University. Expenditures incurred by the subgrantees and reimbursed by the University are included in the Schedule. Of the federal expenditures presented in the Schedule, the University provided federal awards to subrecipients for the year ended June 30, 2013 as follows: Expenditures provided to subrecipients Federal grant agency Department of Health and Human Services Department of Defense National Science Foundation Department of Education Department of Energy Environmental Protection Agency N.A.S.A. Department of Veterans Affairs Department of Interior Institute of Museum and Library Services Department of Justice $ $ 72 56,749,932 5,324,099 1,336,104 392,677 286,805 147,593 91,773 88,756 32,732 5,000 (10,884) 64,444,587 (Continued) UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2013 (7) Vendor Relationships The Special Education Program (CFDA #84.027) constitutes a vendor relationship with the University per OMB Circular A-133 Subpart B.210. This project is being excluded from the Schedule, although it represents federal funds of $4,069,840 for the year ended June 30, 2013. (8) Summary Schedule of Expenditures of Federal Awards The summary schedule of expenditures of federal awards for the year ended June 30, 2013 is as follows: 73 (Continued) UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2013 Federal Expenditures Federal Grantor/Pass-Through Grantor/Program Title I. RESEARCH & DEVELOPMENT CLUSTER (excluding ARRA): Department of Health and Human Services: National Institutes of Health: Direct Pass through $ Health Resources and Services Administration: Direct Pass through 429,064,042 49,815,150 10,040,416 41,469 Centers for Disease Control and Prevention: Direct Pass through 7,769,333 304,781 Agency for Healthcare Research and Quality: Direct Pass through 2,827,110 52,739 Substance Abuse and Mental Health Services Administration: Direct Pass through 268,449 14,680 Food and Drug Administration: Direct Pass through 48,189 170,241 DHHS Other: Direct Pass through 127,003 393,272 Total Department of Health and Human Services Department of Defense: Department of the Army: Direct Pass through $ 500,936,874 $ 17,022,382 11,209,440 Department of the Air Force: Direct Pass through 3,948,354 1,207,492 Department of the Navy: Direct Pass through 7,446,637 1,553,545 Advanced Research Projects Agency: Direct Pass through 64,184 580,168 Defense Threat Reduction Agency: Direct Pass through 1,173,477 52,208 74 (Continued) UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2013 Federal Expenditures Federal Grantor/Pass-Through Grantor/Program Title National Security Agency: Direct 891 DoD Other: Pass through 233,517 Total Department of Defense Other Agencies: National Science Foundation: Direct Pass through $ 44,492,295 $ 22,557,071 4,797,887 Department of Education: Direct Pass through 7,261,561 869,139 Department of Energy: Direct Pass through 4,280,629 4,441,090 Department of the Interior: Direct Pass through 2,024,522 238,698 Department of Justice: Direct Pass through 810,491 72,196 N.A.S.A.: Direct Pass through 457,696 302,644 National Endowment for the Humanities: Direct 178,888 Institute of Museum and Library Services: Direct 21,201 Department of Agriculture: Direct Pass through 99,647 64,176 Department of Commerce: Direct 161,193 Department of Transportation: Direct Pass through 64,885 386,402 Environmental Protection Agency: Direct Pass through 381,584 6,699 75 (Continued) UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2013 Federal Expenditures Federal Grantor/Pass-Through Grantor/Program Title Nuclear Regulatory Commission: Direct 592,123 Department of Housing and Urban Development: Pass through 81,005 Department of Homeland Security: Direct Pass through 266,127 59,922 Agency for International Development: Pass through 212,010 Department of Veterans Affairs: Direct 5,183,926 General Services Administration: Pass through 31,613 Total Other Agencies TOTAL RESEARCH & DEVELOPMENT CLUSTER (excluding ARRA) $ 55,905,025 $ 601,334,194 $ 7,039,195 1,279,965 I-A. RESEARCH & DEVELOPMENT CLUSTER (ARRA): Department of Health and Human Services: National Institutes of Health: Direct Pass through Centers for Disease Control and Prevention: Direct 283,078 Agency for Healthcare Research and Quality: Direct Pass through 818,873 265,770 DHHS Other: Pass through 49,914 Total Department of Health and Human Services Other Agencies: National Science Foundation: Direct Pass through $ 9,736,795 $ 1,311,203 224,959 Department of Energy: Direct Pass through 178,680 510,223 Total Other Agencies $ 2,225,065 TOTAL RESEARCH & DEVELOPMENT CLUSTER (ARRA) $ 11,961,860 76 (Continued) UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2013 Federal Expenditures Federal Grantor/Pass-Through Grantor/Program Title TOTAL RESEARCH & DEVELOPMENT CLUSTER (ARRA) $ 613,296,054 $ 28,374,578 II. STUDENT FINANCIAL ASSISTANCE CLUSTER: Department of Education: Direct Health Resources and Services Administration: Direct 1,208,475 TOTAL STUDENT FINANCIAL ASSISTANCE CLUSTER $ 29,583,053 $ 555,784 $ 555,784 $ 3,810,484 $ 3,810,484 $ 3,301 $ 3,301 $ 2,145,280 2,889,779 III. TRIO CLUSTER: Department of Education: Direct TOTAL TRIO CLUSTER IV. HEAD START CLUSTER (excluding ARRA): Administration for Children and Families: Direct TOTAL HEAD START CLUSTER (excluding ARRA) V. CHILDREN NUTRITION CLUSTER: Department of Agriculture: Pass through TOTAL CHILDREN NUTRITION CLUSTER VI. OTHER PROGRAMS (excluding ARRA): Department of Health and Human Services: National Institutes of Health: Direct Pass through Health Resources and Services Administration: Direct Pass through 2,040,628 796,674 Centers for Disease Control and Prevention: Direct Pass through 24,755 1,603,525 77 (Continued) UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2013 Federal Expenditures Federal Grantor/Pass-Through Grantor/Program Title Substance Abuse and Mental Health Services Administration: Direct Pass through 123,587 1,824,000 Centers for Medicare and Medicaid Services: Pass through 124,219 Administration for Children and Families: Pass through 18,350,610 DHHS Other: Pass through 15,583 Total Department of Health and Human Services Department of Defense: Department of the Army: Direct Pass through $ 29,938,640 $ 41,416 289,753 Department of the Air Force: Pass through 199,183 Department of the Navy: Pass through 754,224 Total Department of Defense $ Other Agencies: Department of Education: Direct Pass through 1,284,576 1,018,445 28,182 Department of Energy: Direct Pass through 15,673 59,944 N.A.S.A.: Pass through 24,198 Department of the Interior: Direct Pass through 29,433 39,334 Agency for International Development: Direct Pass through 31,183 196,021 Institute of Museum and Library Services: Direct 172,171 Environmental Protection Agency: Direct 15,108 78 (Continued) UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2013 Federal Expenditures Federal Grantor/Pass-Through Grantor/Program Title Department of Commerce: Direct 113,444 Department of Agriculture: Direct Pass through 32,972 34,720 United States Institute of Peace: Pass through 1,750 Department of Justice: Pass through 49,258 U.S. Department of State: Pass through 9,572 Department of Treasury: Direct 82,799 Small Business Administration: Direct Pass through 82,613 348,488 Nuclear Regulatory Commission: Direct 34,000 Corporation for National and Community Services: Pass through 150,975 Vietnam Fellowship Fund: Direct 27,000 Department of Veterans Affairs: Direct Pass through 316,698 56,732 Total Other Agencies $ 2,970,713 TOTAL OTHER PROGRAMS (excluding ARRA) $ 34,193,929 79 (Continued) UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Notes to Schedule of Expenditures of Federal Awards Year ended June 30, 2013 Federal Expenditures Federal Grantor/Pass-Through Grantor/Program Title VI-A. OTHER PROGRAMS (ARRA): Department of Health and Human Services: National Institutes of Health: Direct Pass through $ Centers for Disease Control and Prevention: Pass through 1,279,216 (92,942) 19,231 Total Department of Health and Human Services $ Other Agencies: Department of Commerce: Direct 1,205,505 7,722,239 Total Other Agencies OTHER PROGRAMS (ARRA) TOTAL OTHER PROGRAMS GRAND TOTAL – FEDERAL AWARDS AND GRANTS 80 $ 7,722,239 $ 8,927,744 $ 43,121,673 $ 690,370,349 (Continued) KPMG LLP BNY Mellon Center Suite 3400 500 Grant Street Pittsburgh, PA 15219-2598 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards The Board of Trustees University of Pittsburgh – Of the Commonwealth System of Higher Education: We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the consolidated financial statements of the University of Pittsburgh – Of the Commonwealth System of Higher Education (the University), which comprise the consolidated balance sheet as of June 30, 2013, and the related consolidated statements of activities and cash flows for the year then ended, and the related notes to the consolidated financial statements, and have issued our report thereon dated September 17, 2013. Internal Control over Financial Reporting In planning and performing our audit of the consolidated financial statements, we considered the University’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the consolidated financial statements, but not for the purpose of expressing an opinion on the effectiveness of the University’s internal control. Accordingly, we do not express an opinion on the effectiveness of the University’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the University’s consolidated financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 81 KPMG LLP is a Delaware limited liability partnership, the U.S. member firm of KPMG International Cooperative (“KPMG International”), a Swiss entity. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the University’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the University’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Pittsburgh, Pennsylvania September 17, 2013 82 KPMG LLP BNY Mellon Center Suite 3400 500 Grant Street Pittsburgh, PA 15219-2598 Independent Auditors’ Report on Compliance for Each Major Program; Report on Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations The Board of Trustees University of Pittsburgh – Of the Commonwealth System of Higher Education: Report on Compliance for Each Major Federal Program We have audited the University of Pittsburgh – Of the Commonwealth System of Higher Education’s (the University) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the University’s major federal programs for the year ended June 30, 2013. The University’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the University’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the University’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the University’s compliance. Opinion on Each Major Federal Program In our opinion, the University of Pittsburgh – Of the Commonwealth System of Higher Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2013. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as item 2013-001 and 2013-002. Our opinion on each major federal program is not modified with respect to these matters. 83 KPMG LLP is a Delaware limited liability partnership, the U.S. member firm of KPMG International Cooperative (“KPMG International”), a Swiss entity. The University’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The University’s responses were not subjected to the auditing procedures applied in the audit of compliance, and accordingly, we express no opinion on the responses. Report on Internal Control over Compliance Management of the University is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the University’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the University’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies, and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified certain deficiencies in internal control over compliance as described in the accompanying schedule of findings and questioned costs as 2013-001 and 2013-002 that we consider to be significant deficiencies. The University’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The University’s responses were not subject to the auditing procedures applied in the audit of compliance, and accordingly, we express no opinion on the responses. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 We have audited the consolidated financial statements of the University as of and for the year ended June 30, 2013, and have issued our report thereon dated September 17, 2013, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and 84 is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the consolidated financial statements as a whole. Pittsburgh, Pennsylvania March 17, 2014 85 UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Schedule of Findings and Questioned Costs Year ended June 30, 2013 Section I – Summary of Auditors’ Results Financial Statements Type of auditors’ report issued: Unmodified Internal control over financial reporting: Material weaknesses identified? Significant deficiencies identified? No None reported Noncompliance material to financial statements noted? No Federal Awards Internal control over compliance of major programs: Material weaknesses identified? Significant deficiencies in internal control over compliance identified? No Type of auditors’ report issued on compliance for major programs Yes Unmodified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? Yes Identification of major programs: Name CFDA number Research and Development Cluster Various Student Financial Assistance Cluster 84.007; 84.033; 84.038; 84.063; 84.268; 84.379; 93.264; 93.342; 93.364; and ARRA 93.408 Foster Care (IV-E) 93.658 National Center for Research Resources, Recovery Act Construction Support ARRA 93.702 National Institute of Standards and Technology Construction Grant Program ARRA 11.618 Dollar threshold used to distinguish between Type A and Type B programs $3,000,000 Auditee qualified as low-risk auditee? Yes 86 UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Schedule of Findings and Questioned Costs Year ended June 30, 2013 Section II – Financial Statement Findings No matters were reported. Section III – Federal Award Findings Finding 2013-001 – Allowability of Costs Research and Development Cluster: Department of Health and Human Services: Research on Computational Models of Infectious Disease Threats/grant number and year: 5U54 GM088491 04; year 4/grant expiration date: June 30, 2014/CFDA #93.859 Compliance Requirement: Allowable costs and cost principles Criteria In accordance with OMB Circular A-21 (A-21), Cost Principles for Educational Institutions, Section C, costs must meet the following general criteria to be allowable under federal awards: be reasonable and necessary; conform with the allocability provisions (A-21, Section C.4) or Cost Accounting Standards (CAS) Board for educational institutions, as applicable (see 48 CFR part 9905); be given consistent accounting treatment within and between accounting periods; conform with the allowability of costs provisions, or limitations in the program agreement, program regulations, or program statute; be net of all applicable credits, e.g., volume or cash discounts, insurance recoveries, refunds, rebates, trade-ins, adjustments for checks not cashed, and scrap sales; be supported by appropriate documentation, such as approved purchase orders, receiving reports, vendor invoices, canceled checks, and time and attendance records, and correctly charged as to account, amount, and period; and be applied uniformly to Federal and non-Federal activities. Condition and Context In a sample of 193 direct cost expenditures aggregating $15,961,825, which included payroll, fringe benefits, supplies and materials, subrecipient expenditures, and other direct costs, we identified one direct cost ($38,181), which was an allowable cost; however, the cost should not have been subject to indirect cost recovery, resulting in an over-recovery of $19,663. Cause and Effect Controls in place for University program personnel to monitor allowable costs claimed on federal programs require manual effort and judgment. As a result, there is a risk that unallowable costs claimed on federal programs may not be identified. The direct cost was inadvertently coded to a general ledger account, which is subject to indirect cost recovery. Questioned Costs Known questioned costs are $19,663. 87 UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Schedule of Findings and Questioned Costs Year ended June 30, 2013 Recommendation We recommend that the University reinforce its policies and procedures over the management review of program costs and charges to appropriate grant general ledger accounts. Views of Responsible Officials/Corrective Action Plan The costs described in this finding were not allocable to the grant expense category to which they were initially charged. Federal regulations require the University to properly identify and record costs on federal awards. The process of identifying and recording grant-related costs cannot be automated and, therefore, must be performed as a manual process. After-the-fact review and verification of sponsored project ledgers is integral to the University’s system of internal control to help ensure the integrity of costs identified and recorded in our general ledger, including grant-related accounts. The amounts identified by the auditors were subsequently corrected upon identification and are correct as of the date of issuance of this report. The affected institutions were notified of the error and corrective action was taken. University management has reinforced existing policies and procedures related to this finding in writing with grant administrators. A letter to the research community was sent by the Provost; Senior Vice Chancellor for the Health Sciences and Dean of the School of Medicine; and the Chief Financial Officer emphasizing adherence to the timely review of transactions impacting the allocability of costs to research awards and the importance of executing required cost transfers in a timely manner. This notification was sent to all faculty and administrators involved in research. Moreover, the University has devoted additional resources to the research compliance function in recognition of the rapid growth in the University’s research base and the complex nature of the regulatory environment surrounding sponsored programs. These resources are housed in various departments throughout the University―including the Controller’s Office―and they are involved with compliance reviews, outreach, and training in a variety of research compliance areas. Finding 2013-002 – Verification Student Financial Aid: Department of Education Federal Pell Grant Program / CFDA #84.063 Compliance Requirement: Special Tests (Verification) Criteria An institution may participate under an ED-approved Quality Assurance Program (QAP) that exempts it from verifying those applicants selected by the central processor, provided that the applicants do not meet the institution’s own verification selection criteria. An institution not participating under an ED-approved QAP is required to establish written policies and procedures that incorporate the provisions of 34 CFR Sections 668.51 through 668.61 for verifying applicant information. Such an institution shall require each applicant whose application is selected by the central processor, based on edits specified by ED, to verify the information specified in 34 CFR Section 668.56. However, certain applicants are excluded from the verification process as listed in 34 CFR Section 668.54(b). The institution is not required to verify the applications of more than 30 percent of its total number of applicants. The institution shall also require applicants to verify any information 88 UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION Schedule of Findings and Questioned Costs Year ended June 30, 2013 used to calculate an applicant’s expected family contribution (EFC) that the institution has reason to believe is inaccurate. Generally, the information that must be updated is the number of family members, number of family members attending postsecondary educational institutions, and the applicant’s dependency status (34 CFR Section 668.55). Information that must be verified or updated is adjusted gross income, U.S. income tax paid, aggregate number of family members in the household, number of family members in the household who are enrolled as at least half-time students in postsecondary educational institutions if that number is greater than one, and untaxed income and benefits. Condition and Context For one student in a sample of 40, the supporting documentation for the adjusted gross income did not agree to the amount reported on the Institutional Student Information Record (ISIR) by $1,000, which impacted the Pell grant awarded to the student. As a result, the student’s Pell would have been reduced by $300. Cause and Effect A human entry error was made when correcting the taxable income. Due to the manual nature of the process, the error was not identified. The possibility of other keying errors could have occurred where students may be awarded amounts that they are not eligible for during the awarding process. Questioned Costs Known questioned costs are $300. Recommendation We recommend that the University reinforce its policies and controls over verification of students’ information. Views of Responsible Officials/Corrective Action Plan The one exception was the result of human error in updating the Adjusted Gross Income (AGI) data on the student’s Institutional Student Information Record (ISIR). In this instance, a number of updates to the student’s ISIR were necessary, including gross income and number of family members. During the data entry process, the AGI was incorrectly updated on the ISIR. Once the error was discovered, the AGI amount was corrected. The Office of Admissions and Financial Aid (OAFA) has about fifteen staff members who complete verifications during the spring and early summer months. To ensure accuracy when reviewing verification data, in-depth training with these staff members regarding best business practices and new federally mandated verification items occurs at the beginning of each awarding season. In addition, during the 2012-2013 financial aid award year, OAFA personnel selected approximately 200 students who were already verified for the 2012-13 school year and reverified their records. OAFA verification training will emphasize the importance of verifying and reverifying the correcting data on the student’s ISIR before submitting the information to federal Central Processing System (CPS). In addition, OAFA will continue to select an ample sampling of students during the school year who were verified and reverify their records to find any errors that may have occurred and identify any processes that may require additional staff training. 89